The Factors that Affect Your Auto Insurance Deductible

Auto insurance is a necessary part of owning and operating a vehicle. At first, you may feel like it is another expense or bill to pay, but in the event of an accident, theft, or water damage, your auto insurance policy helps mitigate any associated financial burdens.

Whether it is monthly, quarterly, or annually, you pay an auto insurance premium to ensure your coverage. However, when an accident occurs, the repairs (or replacement) can be very costly, which is when auto insurance deductibles come into play.

An auto insurance deductible is essentially a barrier, or maximum amount, you will be responsible for paying. Though deductibles are typically less than the total cost of repair when you file a claim, they can still be quite costly to pay at a moment’s notice.

There are several factors that contribute to the cost of auto insurance deductibles; you can work with your insurance provider to adjust some of them, while others are out of your control.

The Factors that Affect Your Auto Insurance Deductible

Three main factors that have a significant impact on your auto insurance deductible amount are: 1) the required coverage in your state, 2) your age, and 3) your car’s make and model.

While these factors may be out of your control, it is important to remember that every driver is different and has different insurance coverage and budget needs. When shopping for auto insurance, the following are a few factors, within your control, to consider because they affect auto insurance deductibles.

#1: Your Driving Record

Insurance companies actively assess risk, and your driving record is a part of that risk. “How often have you been in an accident?” or “Will you file a future claim?” are a couple of questions that can impact your deductible amount.

#2: Leased Vehicles

When you lease a vehicle, there may be a set deductible amount that is required. This means there really isn’t too much wiggle room to get a lower amount, which is why it is important to fully understand the terms and fine print of your lease agreement.

#3: Coverage Type

The type of coverage you have also affects the cost of your auto insurance deductible. For example, if you have the bare minimum coverage required, such as only having liability insurance, then you likely won’t have a deductible at all. Whereas comprehensive coverage (collision, mechanical, etc.) will have an accompanying deductible.

Need Help Finding the Right Auto Insurance Deductible?

Researching to find the right auto insurance policy, let alone the ideal auto insurance deductible for you can be time consuming.

At GWK Insurance, we do the research and provide you with the best options for your unique needs and budget so you can make the best possible decision. Contact us today to find the best auto insurance policy and provider to meet your unique coverage and budget needs.