Should You Choose A Higher Or Lower Deductible For Your Auto Insurance?

When it comes to having the right protection you should always choose the option that best suits your needs. For many, there is a question about the amount of the deductible during a covered event. If you are not sure how the deductible works, here are a few important things to know to help you make an informed decisions.

Lower Deductible, Higher Premium

If you are tempted to go with the lower deductible, you may not realize that you are still going to have to make up the difference in the form of higher premiums. If you are on a tight monthly budget, you might want to opt for a higher deductible so you don’t have to pay as much up front. Keep in mind, however, if you do experience a covered event, you are going to need to meet the deductible amount before the insurance is going to cover expenses incurred as a result of a claim.

Are You Financing?

If you are financing your vehicle, you should consider going with the lower deductible and paying the higher premium up front. It will make it easier for you to have the vehicle repaired and allows you to feel more secure in the event of an accident. This is especially true is there are extensive damage and medical bills. Most people who have full coverage for newer vehicles should opt for maximum coverage as well as the lower deductible to ensure they can have the least amount of issues on their end during a claim. If you live in Longmont, CO, 1st American Insurance Agency can help you determine which situation best suits your needs. 

Before making a purchase for insurance products, make sure you know whether or not you want a lower deductible. For people living in or around Longmont, CO, 1st American Insurance Agency invites you to call or stop by for more information and answers to your insurance questions.