Whether you’re new to auto insurance or have been a policyholder for some time, understanding auto insurance deductibles can be challenging. At Rancho Del Sur Insurance Services Inc. in San Diego, CA, we’re here to help you gain clarity about auto insurance deductibles. This way, you can make an informed decision about your insurance policy and have peace of mind following an auto accident.
Understanding Auto Insurance Deductibles
An auto insurance deductible is a component of your auto policy’s comprehensive and collision coverages. Before your insurance pays out in the event of a comprehensive or collision claim, you must first pay a deductible.
The deductible is the amount you agree to pay out-of-pocket if you file a claim for a covered incident involving your vehicle. Deductibles on an auto insurance policy typically range from as low as $250 to $1000 or more, depending on the insurance carrier. For example, if you were in an accident and received a $5000 estimate for repairs to your car, and you have a $500 deductible, you would pay the repair shop $500, and your insurance carrier would cover the remaining $4500.
It’s important to note that the deductible you choose impacts your policy premiums. A lower deductible results in higher premium payments, while a higher deductible leads to lower insurance premiums. You may opt for a lower deductible if you frequently get into accidents. If you rarely have accidents, you could save on premiums by choosing a higher deductible and setting aside the savings for potential accidents. The choice of deductibles is a financial decision you’ll need to make, but you don’t have to make it alone.
We’re Here to Help!
At Rancho Del Sur Insurance Services Inc. in San Diego, CA, we’re here to answer any questions or concerns you have about auto insurance deductibles, how they work, and how they affect your premiums. Call us today at (858) 798-5450.
