Sure, it’s good to have that extra money in your pocket. More dinners out, less pain when paying for those movie tickets, and you can go shopping at the fancy supermarket rather than the bargain mart. But when an accident occurs, be it big or small, some of you might be wishing you had paid that higher premium rather than opting for the fancy brand name granola.
Certainly, those with lower incomes might have no option but to choose the lower premium rates that are mandated by state law for minimum liability coverage.
If you think the higher premium for a lower deductible isn’t worth the cost, just consider how daunting it could feel when you have to pay $1000 or more for simple cosmetic damage to your vehicle. For some, the whole point of insurance is to avoid that moment of shock when the body shop hands over the bill.
The most common instance for this is when you have a chip or crack in your windowsheild. If you need that windsheild replaced, you could be looking at upwards of $500 dollars to replace it. Unless you’ve set your deductable low, it could cost you $50 or less.
Making too many insurance claims can come back to haunt you. The more claims you make, the more you’ll see your insurance rates go up. If you have a higher deductible, you might feel less inclined to make a claim on that scrape you put on your truck heading out of your garage.
Obviously, if there’s a history of accidents or just bad luck when it comes to your vehicles, paying the higher premiums should be a no brainer.
If you are flush with income, have a sterling driving record of no-fault injuries, and can basically afford that unexpected moment when somebody broadsides you in a parking lot, a lower premium and higher car insurance deductible might suit you just fine.