Car Insurance Deductible

We all have heard it. Some of us had direct experience on this matter. So what is car insurance deductible? What does it mean? By definition, the term deductible is the amount that you pay out of your own pocket in an accident. Florida car insurance companies usually charge from 500 dollars to 1500 dollars. Car insurance usually increases the deductible especially when they are insuring a high-risk client. For example, an old car or a driver with multiple traffic violations which can eventually lead to a serious accident in the future. This is also true for some luxury vehicles.

Having a large deductible can actually lessen the amount of premium for car insurance. Be wise about this scenario though because you can end up paying out of your own pocket for every minor accident that you will encounter. If the car insurance company allow you to choose a deductible, it would be wise to choose an amount that is not too low and not to high. This kind of strategy will allow you to save some money out of the insurance premium while still having protection for minor repairs due to accidents. It is also advisable to save a few bucks off the discount you got in the premium for emergency purposes.

Insurance company can play a hard bargain on this one. While it is true that the policyholder gets to choose how much is he or she is willing to pay as a deductible, sometimes the policyholder still needs to comply with some guidelines. Now that you have a basic idea on what is a deductible, choose wisely. Ask yourself if you have the ability to pay that deductible if and when the need arise. Are you willing to save some money out of the premium discount you got? If the answer is yes you want a low cost car insurance, then go for a higher deductible.