Auto Insurance Deductibles, how much do I need?

Auto insurance deductibles are one of the biggest decisions you will need to make in regards to your insurance. The higher your deductible, the lower your monthly payment. The lower your deductible, the higher you will pay. The deductible is what you will pay out of pocket in case of an accident in which you are at fault or if the other driver does not have insurance .

Auto insurance deductibles are usually either 250$ or 500$. In case of a very expensive car accident, that seems like a small amount to pay in comparison to the literally thousands of dollars your car insurance company will be paying.

If you choose the 250$ deductible, you will have much less to pay upon an accident. If you most likely would not have 500$ available in the case of an accident, it makes sense to pay a little more for the lower deductible. That way you pay a few bucks more a month for the added protection.

For the 500$ deductible, it’s smart if you have money in the bank or savings in case of an accident. If you likely would have the money to pay the higher deductible with no problem, then go for the higher deductible. You will be able to pay a cheaper monthly payment for your car insurance in this case.

So truly, the auto insurance deductible is something that you can debate depending on your finances. If you have the money to pay the out of pocket, then the higher deductible is the way to go. If you don’t, then paying for the lower deductible is best.