How Much Should My Auto Insurance Deductibles Be?
When getting your auto insurance policy or even if you are reviewing your existing policy many will ask what their auto insurance deductibles should be.
Well you have two types of coverage and that is your collision and comprehensive. The comprehensive covers your car and the collision covers the other guys vehicle.
What you need to ask yourself is how much can you afford out of pocket if you are in an accident. If you are comfortable with pulling together $500 as a deductible based on your savings or available credit on your credit card, you will want to set it at that amount.
The higher your deductible the lower your insurance premiums. If you do not feel comfortable with $500 and you tend to have fender benders or other small incidents with your auto, then you might be better off with a $250 deductible.
You just have to remember that if your insurance premiums are much higher, over a certain number of years it would make sense to carry a higher deductible because these higher premiums can really add up.
You have to set you auto insurance deductible with what you are comfortable paying out of pocket before the insurance company picks up the rest of the tab.
So review your policy and make sure you evaluate how much more of a premium you will be paying based on your deductible and comfort level of paying that auto insurance deductible in case of an accident.
