What are deductibles?
The car insurance quote that you get from an insurance company is calculated after the deductibles that can be paid by the car owner. Deductible is the amount that you are ready to pay in case of accidents or repairs to the car, and is part of the policy. It simply means that you are required to pay a portion of the damages to the car, while the insurance company would pay the rest of the portion. For example if you have take a policy for $3000 and you have deductibles for $500. In case of damages for the car costing $3500, you would pay $500, while the company would pay $3000.
How do you calculate the deductibles for your car insurance policy?
You can get the cheapest car insurance by increasing the amount of deductibles. For this you need to decide how much you are willing to pay and how much insurance coverage is required by you. You would need to pay the deductibles in case of an insurance claim for the damages that are borne by the car. You can get a low insurance premium when you increase the amount of the deductible. If you are ready to pay higher out of pocket expenses, then you will get a really good insurance deal. Deciding the amount of the deductibles is a trade-off between paying out of pocket expenses and paying the car insurance premium. If you think that you would hardly make a claim then opt for higher deductibles. In that case the insurance premium would be very low.
Know these factors before you purchase a car insurance policy
You need the cheapest car insurance policy that will protect in case of man made accidents as well as accidents due to nature. If you live in earthquake or flood prone areas, then you should apply for a comprehensive policy. It’s also important to know the minimum requirements for the insurance coverage as stipulated by the state that you live in. Know about the various discounts that are given by the insurance company. Discounts are available for those that have a clean driving record without any accidents or traffic violations. By knowing the deductibles that you can afford, the various policies that can be purchased and the discounts applicable for you, pick the cheapest car insurance for yourself.