When you’re looking to buy auto insurance, one of the more important decisions you need to make is whether to go with a low deductible and higher premium or a higher deductible and a lower premium. For folks living on a budget, the decision can be an easy one: go with the lower premium/higher deductible option and pray they don’t get into an accident. Unfortunately, the decision can be a bit more complicated for people who have more money to spend on their auto insurance; they want adequate protection but don’t want to spend money they don’t have to.
If you ever find yourself in a similar situation, there are a few things to take into consideration when deciding which type of auto insurance plan will provide the most protection for the best price.
- Time Spent Driving – Those who do most of their driving locally and spend little time on the road aren’t as likely to get into an accident as someone else. Therefore, someone who spends a minimal amount of time driving could likely get away with a higher deductible and lower premium.
- Value of Your Car – The higher your vehicle’s value, the more coverage you’ll want. Older, less valuable vehicles can be replaced (if need be) for a much lower cost.
- Who’s Driving – If you’re the only one to drive your vehicle and you have an impeccable driving record, you might be able to get away with a higher deductible. However, if you lend your vehicle to friends, or have new and inexperienced drivers who will be getting behind the wheel, you may want to go with a lower deductible. Inexperienced drivers are at a much higher risk of getting into a collision than more experienced ones. When the odds of having to file a claim go up, it might be wise to make sure your deductible is low.