Learn More About High Deductibles and How They Affect Your Insurance

Find out what you need to know about choosing auto insurance with a high deductible.

Buying the right auto insurance is important. It’s a necessary safeguard to protect you on the road from disaster. However, choosing the right type of auto insurance depends on various factors. It’s important that you get the right coverage at the right price. Choosing a policy with a high deductible can help you save on your coverage. However, there are both benefits and negative to choosing a policy with high deductibles. Check out what you need to know about choosing a policy with the right deductibles.

Benefits of High Deductibles:

  • Lower Monthly Premium. When choosing an auto insurance policy, price plays a big factor in your decision. You want affordable coverage that helps you get the coverage limits that you need. Choosing a policy with a high deductible generally comes with a lower monthly insurance rate. This is because in the event of an accident your deductible, or the amount that you have to pay out of pocket before your insurance kicks in, is higher. Choosing a policy with a high deductible is beneficial to help keep rates low, however, it may not always be the cheapest option in the long run.

Cons of High Deductibles:

  • Greater Out of Pocket Expenses. When you choose a policy with a high deductible, it may give you the benefit of lower monthly premiums. However, should you need to use your coverage, you’re left with higher out of pocket expenses. You could, in fact, wind up paying more in the long term. Be aware of all the factors involved in the price of your insurance coverage so that you can make the decision that’s best for your needs.

When it comes to your auto insurance, ensure that you choose the policy that best fits your needs. Weigh the pros and cons so that way you’re well covered. Contact Mike Leonard Insurance Agency in North Texas. We’ll work to get you the right coverage from one of our carriers Kemper, MetLife, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance so you can rest easy with excellent protection.