Call Us 757-865-1900 ☰ ˟
Logo
Call Us: 757-865-1900
  • Home
  • Get A Quote
    • Automobile
    • Business & Commercial
    • Flood
    • Group Health
    • Health
    • Homeowners
    • Life
  • Claims/Payment
  • Resources
    • Refer a Friend
    • Our Carriers
    • Insurance Glossary
  • About Us
    • About Us
    • Our Locations
    • Privacy Policy
  • Contact Us
Icon

Auto & Home

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

Business

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

Group Health

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

Flood

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Home > Blog > The Benefits of Having High Auto Insurance Deductibles
FRIDAY, AUGUST 5, 2022

The Benefits of Having High Auto Insurance Deductibles

Auto insurance costs differ from one person to the next. One of the reasons is often the deductible. This is the amount paid prior to the insurer funding the rest of the insurance claim.  

Choosing the right deductible amount is important. It impacts how much you'll pay for insurance and claims overall. A higher deductible usually reduces premium costs. But, is it possible to raise the deductible too much? woman sitting in car

Why a High Deductible Can Be a Good Thing 
A higher deductible often reduces premium costs. This is because it reduces the amount of money the insurance company must pay when a claim occurs. For example, consider a vehicle accident with $2,500 worth of damage. With a deductible of $500, the insurer pays only $2,000. Raising that deductible to $1,000 reduces how much the insurer has to pay. With the new deductible, they might only have to pay $1,500. This reduces their cost, which in turn may reduce your costs. 

If you do not file claims often, this can be a good thing. Many vehicle owners rarely file a car insurance claim. That means that high deductible might reduce their premium year after year. In this situation, the cost savings is significant. Yearly, this could amount to a large savings. 

Of course, for those who need to file an insurance claim, high deductibles are not as beneficial. If you find yourself filing claims annually, consider the deductible carefully. You don't want to have to frequently pay out the deductible. 

Be Careful About a Too-High Deductible 
There are risks to having a high deductible. This is the amount you must pay on the claim. In the above example, the vehicle owner must pay $500 out of pocket for the accident. If you raised this to $1000, could you still afford to pay this amount out of pocket? If not, it is a big risk to raise the deductible this high. In this example, the high cost could make it hard for the car owner to pay for the repairs. This may mean being unable to drive the vehicle. Choosing the right level of care is important, but not always easy to do. 

Auto insurance costs differ for many things. Discounts and rewards can help drop costs, too. Combine these features with an appropriate deductible. Doing this helps reduce overall costs. Finding the right balance is important, though. Consider how much you can afford to keep on hand. Don't raise the deductible above this. However, putting aside a higher amount can help you save money year after year. Lastly, talk to your insurer about how you can maximize your savings. Your independent agent can often help you determine the right coverage. 

Posted 1:31 PM

Tags: auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • group health insurance(4)
  • business owners policy(4)
  • coverage(3)
  • auto insurance(3)
  • home insurance(3)
  • workers compensation insurance(2)
  • workers compensation(2)
  • bop(2)
  • insurance(2)
  • benefits(1)
  • older(1)
  • policy(1)
  • flood insurance(1)
  • compensation(1)
  • home(1)
  • vehicles(1)
  • auto(1)
  • workers(1)
  • business insurance(1)
  • general liability insurance(1)
  • car(1)
  • health insurance(1)
  • life insurance(1)
  • homeowners(1)
  • new(1)

View Mobile Version

Contact Us Today!
757-865-1900

Social

Resources

  • Products
  • Certificate Requests
  • Payment Options
  • Report a Claim
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

Contact Us

Virginia Beach
484 Viking Drive, Suite 140
Virginia Beach, VA 23452

Phone: 757-865-1900
Fax: 757-865-1478
info@morganmarrow.com
Hampton Location
Six Manhattan Square
Hampton, VA 23666

Phone: 757-865-1900
Fax: 757-865-1478
info@morganmarrow.com
© Copyright. All rights reserved. | Powered by Insurance Website Builder