Reader’s Question:

I heard that getting higher deductible will give me cheap online car insurance. Can you tell me more about this?

Paul

Des Moines, IA

That’s correct Paul. Getting higher deductibles will give you cheap online car insurance. Let me just explain what a deductible is.

If you get involved in an accident and you file for your car insurance claims, there’s this portion of the claim that you need to pay first before your car insurance providers pays the rest. And that’s what you called the deductible. Below is a scenario that explains what a deductible is all about.

A driver is involved in an accident. And as expected, he would file for car insurance claims. His car insurance claim is $1000. He has a deductible of $100. So he needs to shoulder the $100 personally before the remaining $900 claim is shouldered by his own car insurance company.

That’s how the deductible works. If you were a driver with higher deductible, I’m sure you’ll do your best to avoid getting into any kinds of accident to avoid filing for car insurance claims. Because with higher deductible, you’ll only be required to pay more once you’ve made your car insurance claims. And that’s how car insurance companies view it. They deem drivers who have selected higher deductible as those who would avoid accidents to avoid paying a part of their car insurance claims.

Usually, the kind of car insurance coverage that offers deductible is the physical damage coverage also called as comprehensive and collision. This kind of coverage pays for the damage on your car regardless of who’s the at-fault party. As long as you have this policy, you can be sure that your car insurance provider will cover for the damage on your car.

The usual deductibles offered in the market today are $250, $500, and $1000. For some people, they opt to get lower deductible for comprehensive coverage since this only covers your car from slight problems like vandalism and give higher deductible for comprehensive that covers for collision-related incidents. So some opted to have a deductible of $100 for comprehensive while $250 deductible for collision.

Before deciding on whether you should get higher deductible or not, ask yourself first if you can afford to pay the amount of deductible once the situation calls for it. Also, if you think that you are indeed a very good driver that would not make any car insurance claims and have the financial capability to shoulder your deductible then do so. This is one great way to get cheap online car insurance thus saving on your car insurance bills.

To get more information about cheap online car insurance, ask your car insurance agent or check the websites to get cheap car insurance quotes.