Choosing the right comprehensive coverage insurance deductible can be quite hard. As you know from our previous posts, increasing your deductibles will loser your premiums, but that will also make you pay more out of your pocket if you suffer an accident with your car.
In this article, we'll explore the factors to consider when choosing a comprehensive coverage insurance deductible.
Understanding Comprehensive Coverage Insurance
Before diving into choosing the right deductible, you must know what comprehensive coverage insurance is. Comprehensive coverage insurance is coverage option that will protect your car againgst non-collision damages like theft, vandalism, natural disasters (fires, floods, hurricanes, tornadoes, earthquakes) or animal-related damates, among others.
Factors to Consider When Choosing a Comprehensive Coverage Insurance Deductible
1. Your Finances
The first and most important factor to consider when choosing a comprehensive coverage insurance deductible is your finances. If you set low deductibles, you will pay higher premiums every month, but you won’t pay that much when needing to repair your vechile if you suffer an accident. In the other hand, if you set high deductibles, you will pay more out of your pocket, but you won’t pay that high premiums every month if you suffer an accident.
2. Your Driving Habits
Your driving habits have an important role when setting your comprehensive coverage insurance deductibles. If you drive in some areas where your vehicle could be stolen, it often be a lot of floods or many deers run around the roads you often to drive, you may consider to set lower deductibles, this way you won’t pay that much out of your pocket. However, if you drive in a safe area where you know car theft if low or natural disasters are something uncommon, you should increase your deductibles, this way you’d save on your premiums.
3. The Value of Your Vehicle
Well, that’s quite logic, if you insured a Bentley, you know the repair costs will be higher than insuring a Toyota Camry, Bentley cars are expensive to repair. So if you are insuring an expensive car, you should consider lowering your deductibles, this way you won’t put on risk your finances. However, if you are going to insure a Toyota Camry, you could decrease your deductibles. This way you’d save some money on your premiums.
4. Your Risk Tolerance
Your risk tolerance is another factor to consider when choosing a comprehensive coverage insurance deductible. If you’re affraid to get broke when repairing your vehicle, then you should lower your premiums. If you feel ok taking some risks from your own, you should increase your deductibles.
Choosing the Right Comprehensive Coverage Insurance Deductible
Now that we've explored the factors to consider when choosing a comprehensive coverage insurance deductible, you should be able to set the right amount of deductibles on your policy. To do this, you must evaluate each point moentioned above: your finances, your driving habits, the actual cash value of your car, and your tolerance of the risk. Once you dedice the right amount of deductibles, you must choose the amount that ti makes you feel ok for you and your presonal situation.
There is not one-size-firts-all solution when setting your deductibles on your comprehensive coverage policy. What it works for your neighbor may not fit your needs. That’s why you must consider your personal situation instead of looking to other’s deductibles in theyir policies.
Conclusion
You must be careful when choosing the right amount of deductibles for your comprehensive coverage insurance. Consider your finances, your driving habits, the actual cash value of your car, and your risk tolerance. Each individual’s situation are all different, there’s not a single-size-fits-all solution, so if you can make all this factors count for you, you will be able to know how much deductibles you must set for your policy.
Other readers were also interested in the following posts:
Understanding Comprehensive Coverage Car Insurance Limits
Is a Comprehensive Car Warranty Worth It?
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