A higher deductible means a reduced cost in your insurance premium.

Is a higher deductible better for auto insurance. Drivers trying to save money may wish to consider choosing higher deductibles on their coverages in exchange for a lower car insurance premium. Moreover if you are a low-risk driver who rarely files claims youd be more comfortable with a high-deductible policy. The Insurance Information Institute calculates that raising your deductible from 200 to 500 can reduce your premiums by 15 to 30 percent.

A higher deductible of 1000 means your. That depends on your insurer the state youre registered in and other factors. Unlike liability coverage which doesnt have a deductible collision and comprehensive insurance pays only the amount that exceeds the deductible.

With a higher deductible your responsibility in the claim might be 1000 leaving 1000 for the insurance company to pay. Collision is often pricier and makes more sense to go with a higher deductible. The short answer is yes Your premium rate will go down if you choose a higher deductible.

Does Your Car Insurance Deductible Affect How Much Pay. Expensive vehicles cost more to insure. The disappearing deductible often found in auto insurance policies is a reward for being a lower-risk individual.

Not every type of car insurance coverage requires a deductible but for those that do youll typically choose a dollar amount. If you increase your deductible you will save money on your premiums. You might even have separate deductibles for different types of coverage such as collision and comprehensive.

The higher the deductible the less risk the insurer takes and the lower the premium. But theyll also pay more. The downside of a lower deductible Drivers who opt for an auto insurance policy with a lower deductible will spend less each time they file a claim.