Home - Contact Us - Guest Book - Ebooks - M-Board

Car Insurance Deductibles

learn how to deductibles pricing of your auto insurance here is some important points:

Deductibles Pricing Of Auto Insurance

Important:

When deciding what insurance policy you want to purchase, choosing a deductible is an important step. After all, you will have to pay the deductible for each and every situation in which you require your insurance company to cover damages. Deciding how much you are willing to pay and how often you think you will need to make an insurance claim will help you decide what deductible amount is right for you. In addition, the premium you pay, or the price of your total coverage annually, can be lowered by choosing a higher deductible. In other words, if you are willing to pay higher out-of-pocket costs, you can lower the total cost of your insurance.

Purchasing an auto insurance policy doesn't have to be confusing. You want a policy to take care of your expenses in the event of accident, theft, vandalism or most any other instance in which there is damage to your own or someone else's vehicle. By knowing what your state requires, what your needs are, what discounts you qualify for and how much coverage you want for your car, you will be able to choose the right policy.

Reality Check:

If you had an accident at the end of the first year, you would pay more by having a $500 deductible instead of $250 if you could save $50 every three months. How? At $250 for three months, your coverage will cost you $1,000 a year. An accident in which you pay $250 in repairs makes the total $1250. If you had a $500 deductible and your premium was $200 ($50 less) for three months, you would pay $800 in premiums and $500 in repairs, a total of $1300. However, if you had an accident at the end of two years you would have paid premiums of $2,000, plus $250 in repairs, making your cost $2,250

in our theoretical case of $250 deductible. At $500 deductible, premiums for two years would be $1600, plus $500 in repairs, for a total of $2,100, a savings of $150 total, or $75 a year. Let's take it one more year. At $3,000 worth of premiums for three years, and $250 for repairs, we're facing off $3,250 against $2400 in premiums plus $500 for repairs...,$2,950 - $300 savings, or $100 a year.

'What-if' nothing changed, but you had an accident at the end of 10 years? You would average a savings of one hundred seventy five dollars a year, still not the 200 it looked like at first.

Is it worth it? Take into consideration your (and anyone else's who drives under this policy) driving habits and statistics. Auto Insurance has a list of things to consider such as age, type of vehicle and so on.
Keep in mind though, that if the chances of being in an accident are one in a hundred, that one chance still exists!

© Copyright 2007 Insure-yourcar.org offers Great information about Vehicle (cars, motorcycles, bicycles, trains, ships and aircraft), Save money when shopping for your vehicles, How to choose your auto insurance, How to get loans for your vehicle with the least amount of money , How to buy your new or used car, Get list of the best used and new car with there description and gallery, Please help support our free ads by linking to our site.