The moment you start looking around for the right automotive insurance for your needs, you will hear the word deductible multiple times. Naturally, you could be wondering what deductibles are and if they are a mandatory part of having car insurance. In essence, the deductible refers to the costs that you will incur before your auto insurance kicks in.
However, the figure that motorists pay will vary from one person to the next, as it is at the motorist's discretion to increase the amount of money that they are willing to pay towards this deductible. But this does not mean that selecting the least amount of money for your deductible will be wise for the long term. Understandably, this can sound confusing. To help you have a clear understanding of what to expect, keep reading for all you need to know about deductibles when in the market for auto insurance.
Is it mandatory to pay a deductible regardless of your auto insurance coverage?
A typical presumption that motorists purchasing automotive insurance for the first time make is that irrespective of what auto insurance coverage they purchase, they will have to pay a deductible. But this is untrue. For instance, if you choose liability coverage to ensure that the insurance company foots the cost of repairs if you damage another motorist's car, you will not be required to pay for a deductible.
On the other hand, if you invest in comprehensive coverage so that you are financially protected in the unfortunate event that your car is stolen, vandalized, or damaged, you will have to pay a deductible. At the outset, it may seem that opting for automotive insurance with less coverage would be the cheapest option but the reality is that the more inclusive your automotive insurance coverage is, the less the financial burden down the road.
Are there advantages to choosing to pay for a deductible?
Contrary to popular belief, paying a deductible for your auto insurance coverage is not merely about increasing your expenses since you are not required to make this payment until you file for an insurance claim. Instead, opting for auto insurance coverage that comes with a deductible could prove advantageous in the long term.
As stated earlier, the higher the amount of money you choose for the deductible, the lower your monthly premiums. Keeping in mind that you may not need to file a claim, especially if you are a low-risk motorist, you get to save money on your monthly insurance expenses since the difference could be several hundred dollars.
For more information on auto insurance, contact a professional near you.