The deductible is the amount the insured pays out-of-pocket for towards any damages or loss before their insurance company starts to pay for the claim. This can be either a percentage of the total amount of insurance or a specific dollar amount.
For example, if you have a $1000 deductible on your auto insurance and you get into a car accident with $3000 worth of damage to your vehicle, you will pay that $1000 and your insurance will cover the rest. The process is the same for homeowners’ insurance claims.
With that being said, it may seem that choosing a lower deductible is the optimal decision as you will be paying less out-of-pocket if you file claim. However, a lower deductible general means you’ll be paying more on your monthly insurance payments. So if you’re a safe driver who almost never gets into accidents, a higher deductible could be the better option. It’s estimated that raising your deductible from $500 to $1000 can save up to 30% on your yearly insurance expense.Of course, the most important thing to consider is that you can afford to pay the deductible you decide on.
We will shop several companies to get the best rates for YOU!
600 E Baseline Rd.
Ste B-3 Tempe, AZ 85283
AZ Insurance Team LLC © ALL RIGHTS RESERVED.
AZ Insurance Team