How to Decide on a Deductible
You must choose a deductible when setting up auto insurance. If you have a loan on your vehicle, you may not have a wide variety of choices because of your loan's fine print. The deductible is the amount you are required to pay up front should you file an insurance claim. The higher your deductible, the lower your monthly premiums are, but should you get into an accident you may regret a high deductible.
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Instructions
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1
Compare the monthly premium payments at each deductible level. Eliminate any deductible levels with premium payments outside your monthly budget.
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2
Read over your loan paperwork. Eliminate any deductible levels higher than what your loan allows. For example, if your loan requires a maximum deductible of $500, you would eliminate a $1,000 deductible from your options.
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3
Review the driving history of those on the insurance policy. If anyone who will drive your car on a regular basis has a history of accidents, choosing the lowest deductible you can afford is a good idea.
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4
Determine whether you have the money in savings to cover a high deductible. Having insurance does not help if you cannot afford to pay your deductible after an accident.
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Tips & Warnings
Review your insurance policy every six months to determine whether you need to adjust your deductible.
