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As we discussed in Tip #5, your deductible is one of the policy terms you should understand in order to get the best price on your auto insurance. Many people never think about – or change – their auto insurance policy, despite the fact that life circumstances may change over time. For some people, it makes more sense to keep a low deductible on their car insurance, but for others, it would be wise to increase the deductible.
If you are a college student who doesn’t have a lot of spare cash lying around, then it may not be wise to set a high deductible. Would it really hurt if you suddenly had to pay $500 to fix your car? Would you be late on paying other bills? Think about what price point would make you really uncomfortable. Take an honest look at your finances. If you are a piggy bank maven, who has saved a lot of money, then you might be better off if you set a higher deductible. If you could imagine getting in an accident and not being bothered with a $1000 out of pocket deductible, then consider that as a limit.The higher your deductible, the more money you can save on your premiums. However, be sure that you really can afford it. Accidents do happen, and you don’t want to be caught in an unpleasant situation where paying the deductible is a major hardship.
If you still aren’t sure what deductible is right for you, please ask us for advice. At Culbertson Agency, we provide our customers with counseling on the various types of coverage they need. If you discuss your situation with us, together we can come up with a plan to perfectly fit your lifestyle and your budget! Hope to talk to you soon, Brian