Larry : What is a deductible under an auto insurance policy? Do I need a deductible under my car insurance policy?

Deductible gives you low auto insurance rates or auto insurance discounts

Response : You must have heard many people say that if you want a low auto insurance rate than you need to review car insurance coverage or compare auto insurance quotes and check your deductible. The higher the deductible you keep, you get a low auto insurance rate. Yes, it is true.

A deductible under the auto insurance policy is an amount that the insured -you would pay out of your pocket in case you have a claim.
For example: If your vehicle sustains $4,000 worth of damage in an accident and your collision coverage deductible is $500, then you will be responsible to pay the first $500 and your insurance company would pay the remaining $3,500.

You can choose different limits of deductible amounts for your auto insurance policy for your collision coverage and your comprehensive coverage. The advantage of keeping a higher deductible under an auto insurance policy is that the higher the deductible is the lower or cheaper will be your car insurance quote. You can save premium. However, please remember that if you keep a very higher deductible under the auto insurance than you would have to shell out that amount in a case of an accident, thus you need to be careful when you select a deductible under auto insurance. You can compare auto insurance to save insurance premium instead of going for very high quotes.


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