At the Hansen Agency LLC in Washington, PA, we understand how confusing insurance terminology can be for many people. Most people read through their insurance policies and find it pretty much like deciphering a foreign language. But that’s where our team of experts come in. We’re here to assist you and ensure you get the most out of your insurance policy.
A common area of confusion is understanding auto insurance deductibles. Essentially, a deductible is the amount you’re required to pay out of your pocket when you file a claim to have your vehicle repaired. It represents your share of the expenses. For instance, if you’re involved in a collision that results in $3000 worth of damage, you would first pay your deductible, and the insurance company takes care of the rest. So, if your deductible is $500, you pay that amount first, and the insurance company covers the remaining $2500. This applies to comprehensive, collision, uninsured motorist, and underinsured motorist property damage claims.
How do deductibles affect your auto premium?
It’s also important to note that the deductible you pay on your auto insurance coverage can significantly impact the cost of your premium payments. Deductibles can vary depending on the insurance company; they could start as low as $250 and could reach up to $1500 or more. The rule of thumb is that the higher the deductible you opt to pay out of pocket for a comprehensive or collision claim, the lower your premium payments will be, and vice versa. For instance, if your deductible is $500, you will pay higher premiums than if your deductible is $1000.
Therefore, you need to consider whether you would be okay with a higher deductible (e.g., $1000 or $1500) to save money on your premiums and whether you can afford the deductible if you have an accident and need your vehicle repaired.
The Hansen Agency can help you decide.
If you’re still wondering which auto insurance deductibles are financially feasible for you, feel free to contact us at the Hansen Agency LLC in Washington, PA, at (724) 436-5142. We’re here to discuss your options and help you make an informed decision. By taking the guesswork out of choosing an auto insurance deductible for your policy, we empower you to make the best choice for your needs.
