Why We Choose The High Deductible For Car Insurance
There are a few reasons why one may choose to go with a higher deductible on their auto policy.
The deductible is the amount you must pay your insurance company before they handle your claim.
1. You choose the higher deductible to lower your premium.
2. Some drivers don’t drive often feeling like they have a lower risk.
3. You have the money to afford a high deductible and so you retain the risk.
4. We sometimes believe nothing can happen to us.
5. Some don’t understand the deductible until it’s time to pay it.
If you selected a higher deductible be sure it’s for a good reason. You don’t want to be left without a vehicle due to a bad choice while buying coverage. Always select a deductible amount that you can keep in your savings account just in case something does happen.
I like number four. “We sometimes believe nothing can happen to us.” and it’s true. I’m guilty from time to time. And while many of us think this way, every 60 seconds an accident occurs somewhere within the U.S. There are an estimated 5.2 million car accidents each year. Some of us had to be at fault for those. I can’t help but wonder out of those 5.2 million how many are our fault. It has to be over half. There are more single car accidents than accidents involving 3 or more vehicles. That’s just a rough prediction. In most cases I see two vehicles or the crazy guy who hit the pole. Every so often I see the accident where it appeared to be a chain reaction but I’ll stop right there before I trail off further.
If you want the lower insurance rates without having to take a high deductible you may find some good results by comparison shopping. I’m not talking about just picking up the phone and calling a couple agents around town. I mean comparison shopping several Insurers. Unless you shopped recently, there’s a company out there that will offer you a lower price for auto insurance.