Very Cheap Auto Insurance -Tips That Guarantee Affordable Car Insurance Rates (Video)

Monday, April 6, 2009

Car Insurance -- How To Know The Right Deductible

By Chimezirim Odimba

Are you sure that you have chosen the right deductible for your auto insurance policy? Do you understand the importance of your deductible and its impact on the overall cost of your auto insurance policy? Permit me to explain why your deductible is so important and how you can use it to get more out of your policy.

Deductible refers to the amount that the insured will have to pay before claiming protection of his or her policy. Why does a change in deductible lead to a change in premium charged on your auto insurance policy? If you promise to pay a high deductible on your policy, your insurer will charge low premium on your policy. Since commitment to pay a high deductible reduces the risk borne by insurers, they offer better deals at lower cost.

Your decision to pay a high deductible on your policy should be determined by risk of accident, theft and damage to your vehicle. If you live in a safe neighborhood or are an experienced driver or have installed alarms in your car, offer to pay a high deductible and bring down your premium. If you are certain that you will not qualify for affordable auto insurance, you can offer to pay a high deductible and bring down cost of your policy.

Do not work with preconceived notions. Whether to pay high deductible or not depends on your immediate ability to pay and your future income prospects. Benefits of promising to pay a high deductible in future outweighs the costs and risks involved. You can always use money saved on your auto insurance premium to pay the deductible when the need arises. Of course, if you never make a claim, this amount is saved on your premium is a bonus.

Opt for a low deductible only if chances of filing a claim on your policy are very high.

If you want to increase your deductible and bring down your auto insurance premium, you should search for the right auto insurance deal on the World Wide Web. Online insurers are known for their flexible and customer friendly approach. Offer to pay a high deductible and watch your auto premium come down drastically. Make use of online quotes to know how much you would save by paying a high deductible on your auto insurance policy.

All you need to do is input the information required and the relation between your premium and deductible will be on your screen. Online quotes are free and non-obligatory and can be obtained without even stepping out of your home. Log on to the web and find out how much you will save if you offer to pay a high deductible on your policy.

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