It can be difficult to choose a deductible; how do you choose the best one for you?
When you’re looking at different insurance plans, you’ll have to choose a deductible. This is how much money you would have to pay out of pocket before your insurance kicks in. Deductibles can range from anywhere between $0 and $10,000. Of course, the lower your deductible, the higher your premium. So, how can you tell which deductible is right for you?
Make Sure You Have Enough Money to Cover Your Deductible
You may be thinking about choosing a high deductible because it would allow you to pay lower monthly premiums. However, if this is the case, make sure that you could actually pay your deductible should you have an accident. Imagine if a fire damaged both your house and your car. You would need to have enough money to pay the deductibles on both before the insurance kicks in. Nothing is worse than being in a crisis and not having the tools you need to pull yourself out.
Check For a Minimum Deductible
If you have a car loan or mortgage, there may be restrictions on how high your deductible can be set. Be sure to talk to your lender.
What Can You Pay Out of Pocket?
Filing a claim may cause your premium to increase. For this reason, many people choose to pay for lower claims out of pocket to keep their premiums from increasing. Consider if and how much you would be willing to pay out of pocket, then choose your deductible based on this information.
Consider Different Deductibles for Different Risks
Did you know that Erie Insurance gives you the option to choose different deductibles for your homeowner’s insurance? You can choose different deductibles for theft or vandalism, fire or lightning, wind or hail, and named storm damage. These are known as by-peril deductibles, and they give you more control over how much you pay. For example, if the risk of water damage in your area is low, you may opt for a higher water deductible so you can save money on your premium. Conversely, if you live in an area that is likely to experience hurricanes, you can choose a lower named storm deductible. Many insurance carriers mandate the deductibles for these risks, but Erie gives you flexibility.
Get in Touch with Wachter Insurance
Looking for someone to discuss your insurance options with? We’re here to help. At Wachter Insurance, we’ll sit down with you and help you to personalize your auto insurance policy so that it works best for you and your needs. Please call us at 301.371.6335, visit our website, or drop by our Middletown, Maryland office to schedule your personal and informative appointment. Be sure to follow us on Facebook, Google+, Pinterest, and Twitter too!
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