Should I Choose a High or Low Deductible?

A deductible is a set amount of money that you will have to pay before your insurance company will cover a claim. In purchasing auto insurance, you can select between paying a higher or lower amount. When making a decision, it is important to plan and think through your monthly budget for coverage payments. UNO Insurance Agency in Phoenix Arizona is here to talk you through the various options for deductible amounts. Call us when you are ready to discuss!

Choosing a High Deductible

Some people choose to pay a high deductible in order to lower their monthly insurance rates. People who have a tighter budget typically pick this option. However, you have to be comfortable with a certain degree of risk. If you have an accident, you may not have enough money saved to cover the damages. Repairs and expenses can quickly become very costly. When choosing a high deductible, you are taking a bet that you will have enough money saved to pay for accidents without going into debt.

Choosing a Low Deductible

Another option is to select a low deductible amount. This may increase your monthly costs, however, you will assume less risk. If you are worried about having an accident and have little money saved, then you may desire a low deductible. This will protect you from paying loads of repair or medical costs. In selecting a deductible, you may not have a choice if your budget limits you, so plan to save funds in case of emergency if you can. Drive safely and use caution, as well!

Other Ways to Save on Auto Insurance

Do not fret if you cannot opt to save on insurance by taking on a higher deductible. There are other ways to save on auto insurance; here are some options to check when you call:

  • Ask about discount programs for college students or certain employers.
  • Ask about discounts, rewards for safe driving, or driving less miles.
  • Mention whether your car is older to determine if you really need that much coverage.
  • Mention whether your car comes with certain safety features that gain an added discount.
  • Ask about programs where you can pay based on the number of miles you drive, or, based on your driving record.
  • Ask to adjust coverage limits in other areas and save.
  • Check if there is a discount for purchasing both renters and auto insurance together.
  • Check if there are incentives for purchasing family plans.
  • Compare rates from differing companies on similar policies.

UNO Insurance is a great resource for auto insurance rates in Phoenix, Arizona; we welcome you to reach out with additional questions.  We are here to see that you have the coverage you need and work with your budget.