Are you newly insured and still don’t completely understand it? It’s easy to get confused by insurance jargon, but Darr-Schackow Insurance will make sure you don’t get lost in translation.
In this blog post, we’ll explain deductibles and how they affect you.
What is a deductible?
A deductible is the amount of money you are responsible to pay for services before your insurance coverage will pay. For car insurance, as an example, if you are at fault in an accident that costs $4,000, and you have a $500 deductible, you’ll need to pay $500 before your insurance will pay the remaining $3,500. Keep in mind that higher deductibles allow your insurance carrier to offer lower premiums, and vice versa.
How do premiums differ from deductibles?
Your auto insurance premium is the monthly cost for keeping your policy active. If you’re not particularly accident prone, it’s often more cost-efficient to lessen the cost of your policy or premium and decide how much you can afford to pay out-of pocket.
When to have higher deductibles.
While your Darr-Schackow insurance agent will help find the best coverage tailored for you, the following are a few reasons to get a higher deductible:
If you can afford to pay more money up-front in the event of a car accident, then you can afford to pay less each month.
You use your vehicle only a few times a year (recreational vehicles or boats), but want to keep insurance year-round.
Have more questions?
Give us a call at 888-337-9322 to have an agent answer any questions you may have!