Should You Have Higher Deductibles On Your Coverage? -

Home
>
Insurance
>
Should You Have Higher Deductibles On Your Coverage?

Should You Have Higher Deductibles On Your Coverage?

What is a deductible? A deductible is the amount you pay before your insurance carrier pays any claim. Insurance companies offer deductibles on certain coverage in insurance policies as a method of sharing risk with the people they insure. Insurers believe that if you, the insured, share some of the risk you will likely be more careful and try to minimize the possibility of a claim. Since you, the insured, pay your share before the company is liable for their share, smaller potential claims are often avoided.

What is the right deductible to carry? It depends not only on the particular coverage but further on your willingness and ability to pay the specified amount in the event of a claim. In other words, select a deductible based on your tolerance for risk. Your agent should be able to help you choose a deductible that is right for you. Often, the decision is an easy one as insurers may only offer a few choices in deductible for a specific coverage.

Typically, which type of coverage offers a deductible? The most common type of coverage with a deductible is physical damage (also known as comprehensive and collision). This is coverage for your vehicle itself. For damage caused whether or not at fault. In many cases if you have borrowed money to purchase your vehicle through a bank or credit union, the lien holder will require that you carry this coverage. This coverage is usually required in the event any damage occurs while you are still paying for the vehicle. Typical physical damage deductibles are $250, $500, and $1000. Higher deductibles will reduce the cost of your insurance by lowering your premiums. When evaluating higher deductibles, it is a good idea to consider carefully your circumstances. Ask your insurance provider for quotes for various deductibles, and analyze them carefully before making a decision. The higher the deductible is on a specific coverage, the lower the premium for that coverage. This is a great way to save on the total cost of your policy. For example, increasing your deductible from $250 to $500 could reduce the physical damage portion of your policy from 15% to 30% depending on your insurance carrier.

Another type of coverage typically offered with a deductible is Personal Injury Protection or PIP. This coverage is also sometimes referred to as No Fault. "No Fault" insurance is a general term that is used to describe any auto insurance system that not only requires drivers to carry insurance for their own protection, and places limitations on their ability to sue other drivers for damages. In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of whom was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies. Not every state requires this type of coverage. No Fault is required if you live in: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah or D.C.

No Fault is usually offered with or without the option of a deductible. You can choose to purchase this coverage with a deductible if you want to absorb some of the risk as with other coverage such as physical damage. As with physical damage, the higher the deductible, the lower the premium on the No Fault portion of your policy. Your agent may recommend taking a deductible on your No Fault if you have health coverage elsewhere since you can only make one claim on any one injury. Some health insurance policies exclude automobile accident so it may be wise to check with your healthcare provider to make sure you are covered if you decide to go with a deductible. Common deductibles options on No Fault are $0, $250, $500, and $1000.

Visit http://www.carinsurance.com to Set Your Deductible

Erick Pace is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online...anytime!

In The News:

Wall Street Journal
Storm Fallout: A Florida Exodus?
TIME - 10 hours ago
After that air assault, of course, shock troops from the insurance industry will attack the peninsula with premium increases outrageous enough to make ...
Construction insurance must for firms GulfNews
Katrina Citizens Losing Insurance Cases On Appeal InjuryBoard.com
A FLOOD OF QUESTIONS: Tropical Systems Fay, Gustav Spur Floridians ... Destin Log
Xinhua - Forbesall 659 news articles

Meadowbrook Insurance Group, Inc. Announces the Retirement of Its ...
MarketWatch - 10 hours ago
Mr. Segal, 79 years old, founded Meadowbrook in 1955 as Meadowbrook Insurance Agency. Under his leadership, Meadowbrook has grown from a start-up local ...
Meadowbrook Insurance founder plans to retire CNNMoney.com
Meadowbrook Insurance founder to retire Business Insurance
all 13 news articles

Amalgamated Insurance Is Moving to Westchester
New York Times, United States - 2 hours ago
By CHARLES V. BAGLI Amalgamated Life Insurance, a company founded by union textile workers in Greenwich Village 65 years ago, is moving its headquarters and ...

Economist
How to determine your bank's financial health
Los Angeles Times, CA - 4 hours ago
The Federal Deposit Insurance Corp. says that when a bank fails, most customers who are covered by deposit insurance don't lose access to their money at all ...
FDIC’s Sheila Bair says tough times still ahead Bizjournals.com
A leaky pool Economist
Bair: Credit Mess “Far From Over” Housing Wire
Inman.com - Los Angeles Timesall 39 news articles

Fla. denies State Farm appeal in rate hike case
CNNMoney.com - 10 hours ago
NEW YORK (Associated Press) - The state's insurance commissioner on Friday denied State Farm Florida's appeal of his decision to reject a 47.1 percent rate ...
State Farm's challenge to rate decision rejected The News-Press
State denies insurer's appeal Sarasota Herald-Tribune
State Farm: Rejected Tampa Bay's 10
Palm Beach Post - Insurance Journalall 51 news articles

Insurance Is Last Hope for Rational Choice of Location
Wall Street Journal - 2 hours ago
3): The insurance industry may be our last best chance to accomplish what government at all levels has failed to do -- make people think about the ...

STORM UPDATE: Insurance info; now with State Farm claims office ...
The Daily Advertiser, LA - 12 hours ago
Insurance companies are beginning to set up local contact numbers for people whose homes sustained damage from Hurricane Gustav. ...
Louisiana Insurance Commissioner to Visit Farmers Insurance Mobile ... MarketWatch
Insurance commissioner provides updates to those with damage WBXH
Insurers are expected to pay at least $2 billion for Gustav The Times-Picayune - NOLA.com
The Daily Advertiser - The Times-Picayune - NOLA.comall 27 news articles

How to pay your debts through insurance
The Punch, Nigeria - 2 hours ago
By Agency reporter Practitioners often claim that insurance solves all problems – from life to death either of persons, property or business or even animals ...
Capital market indices surge by 1.4% The Tide
all 2 news articles

Cities, civil rights groups tussle over police liability insurance
USA Today - 5 hours ago
By John Fritze, USA TODAY Organizers of the Republican convention were required by St. Paul, city officials to purchase a $10 million insurance policy to ...

Renters Insurance: That Was Easy
Forbes, NY - 9 hours ago
Like most of us still in our early 20s, my friend is renting her residence and does not have renters insurance. Her landlord's insurance would not pay for ...

insurance - Google News