How Much Deductible Should You Carry on Your Car Insurance?

Decide your car insurance deductible.

Zero-dollar Deductible Fully Protects You.

You can choose to have no deductible for your insurance policy. Although you pay slightly more for your insurance policy, you will not pay any out-of-pocket expenses in the event of a car accident. In a serious accident, you won't have to worry about how you'll come up with money to fix your vehicle, especially if you are out of work as a result of the accident.

Paid Deductible is Cheaper, But Stay Safe.

Choose your deductible based on affordability. You can choose a deductible from $250 to $1,000 per accident. Save money on your policy premium by choosing a high deductible. Even if you choose the highest deductible amount allowed by your insurance provider or lending institution, you may never have to pay it. Accidents are an unforeseen event, so if you don't have an accident, you don't pay anything and your monthly policy premium is less costly.

Bottom Line

Choose a low deductible unless you have the means to pay in the event of a debilitating or serious accident. You can find yourself out of work as a result. If your vehicle is totaled, you might find it difficult to come up with $1,000 while trying to figure out a means of new transportation. Plan your future expenses carefully. You'll be happy you did if you experience a car accident.

References

• CarInsuranceRates.com: Car Insurance Deductibles Explained