How to Calculate a Deductible for Car Insurance

Video Transcript

"If you're thinking about buying car insurance, one of the things that goes through your mind is "what deductible you should choose?" And again the higher the deductible the lower the premium so if you have some kind of a number that your thinking about spending on your car insurance that's the first thing to think about. When it comes to your limits you've got basic limits and then you've got also a hundred on your bodily injury, three hundred on your property damage and then you also have what's called uninsured motorist. All of those limits have deductibles and again the higher the deductible the lower the premium so there are rate calculators out there. What I suggest is if you have an agent give him a call or her a call and what they can do is run some quotes with the different types of deductibles. It can go anywhere from five hundred dollars to maybe up to five thousand dollars and it is a substantial difference. So think about what you want to do and how much money you're will to pay out of pocket in the event that there is an accident because remember a deductible is the amount that is going to come out of your pocket to pay for any damage to the vehicle and once that deductible is met then the car insurance carrier will pay the difference. So my name is James. I'm an insurance agent and the next time you're thinking about buying car insurance I would strongly suggest to speak with an agent or the carrier and just ask them how much premium for each specific limit and then calculate it on the total basis where you'll get that final number and you'll know exactly how much it's going to cost you to drive that car."