The proper car insurance deductible is as unique as the person driving the vehicle which needs to be covered! While there is no single answer, here are some helpful tips:
The higher the deductible, the lower the premium (You'll be responsible for paying more out of pocket in the event of a claim). The lower the deductible, the higher the premium (You'll be responsible for paying less out of pocket in the event of a claim).
Determine how much cash and credit you typically have available as well as your monthly disposable income (The higher this number, the higher the deductible can be potentially).
Determine the current value of your vehicle (Trade-in, not retail) and consult your agent about it's safety features. A rule of thumb is that the more valuable the vehicle, the higher the premiums (A higher deductible can offset this increased cost).
Be aware of your surroundings - if you park on the street or live in an area with a high propensity for glass damage, consider a lower comprehensive deductible.
As always, please discuss it with your insurance agent prior to making a decision regarding your deductibles!
Joel Guilbert
Liberty Mutual Insurance
480-685-7309
Vice President/Agent, Best Rates Insurance Inc, Kalispell Montana
That really depends on what you can afford for your out of pocket expense . Many will say Higher deductible keeps your rates lower. Yes this is true to a point actually how much are you really saving.
In Montana that average different if the premium is not that much . The difference between a $100 Deductible and a $1000 Deductible for comprehensive if only about $7.00 a month difference in rate. So Yes you are spending $7.00 more a month but in the event of a loss you are putting $900 less out of your pocket. Many glass shops will waive the deductible also so there many things to think about .
1St thing is do you have enough money laying around to cover the deductible amount/ If you wreck your car and take it to the shop the insurance company will pay their portion but the shop will not release your car till you pay yours. Coming up with a $1000 maybe much harder to come up with.
I would contact your agent and ask them how much a month difference it is in the rate before you jump in to conclusion.
Be advised that agents that are posting answers to this question or any question are not to be posting there business information as your last person that answered the question did. You can reach the agent answering the question by the contact them button on the side.
Hope this helps you with the information you need.
Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
Something to consider when choosing a deductible is to ask yourself, what are you comfortable with paying if there is a loss vs. what you save. Here is a generic example. Say for example you want a $500.00 collision deductible for your car. Now you may be considering a $1000.00 deductible to save you a little money. And for example going to a $1000.00 deductible vs. a $500.00 deductible will save you $50.00 every six months. That is $100.00 in your pocket annually. It would take you 5 years to break even vs. what you save and what you could potentially pay out and then you are money ahead. This is one good way to weigh the options of what deductible to take and help you make an intelligent decision.
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The higher the deductible, the lower the premium (You'll be responsible for paying more out of pocket in the event of a claim). The lower the deductible, the higher the premium (You'll be responsible for paying less out of pocket in the event of a claim).
Determine how much cash and credit you typically have available as well as your monthly disposable income (The higher this number, the higher the deductible can be potentially).
Determine the current value of your vehicle (Trade-in, not retail) and consult your agent about it's safety features. A rule of thumb is that the more valuable the vehicle, the higher the premiums (A higher deductible can offset this increased cost).
Be aware of your surroundings - if you park on the street or live in an area with a high propensity for glass damage, consider a lower comprehensive deductible.
As always, please discuss it with your insurance agent prior to making a decision regarding your deductibles!
Joel Guilbert
Liberty Mutual Insurance
480-685-7309
In Montana that average different if the premium is not that much . The difference between a $100 Deductible and a $1000 Deductible for comprehensive if only about $7.00 a month difference in rate. So Yes you are spending $7.00 more a month but in the event of a loss you are putting $900 less out of your pocket. Many glass shops will waive the deductible also so there many things to think about .
1St thing is do you have enough money laying around to cover the deductible amount/ If you wreck your car and take it to the shop the insurance company will pay their portion but the shop will not release your car till you pay yours. Coming up with a $1000 maybe much harder to come up with.
I would contact your agent and ask them how much a month difference it is in the rate before you jump in to conclusion.
Be advised that agents that are posting answers to this question or any question are not to be posting there business information as your last person that answered the question did. You can reach the agent answering the question by the contact them button on the side.
Hope this helps you with the information you need.