Did you know that sometimes a cheap car insurance quote is a direct result of increasing the car insurance deductible? Read on to find out more!
What is a Car Insurance Deductible?
A Car Insurance deductible or excess is the amount that must be paid out of your pocket before an insurance provider pays for any of the expenses.
Whats the connect between Deductibles and Car Insurance Quote?
When you purchase a Car Insurance policy, it’s like making a deal with your insurer to cover your car against an unforeseen loss or damage. In turn, the insurance company can say, “Sure, I will cover the losses but only when you agree to pay the first part of it, which is in the form of a deductible”
When an insurance company increases the deductible amount in your insurance policy, they are transferring some of the risks to you. This means that at the time of a claim, your insurance company will have to pay lesser towards your car repair. In fact, your insurance company will chip in only after you have paid the deductible or the initial amount. Because the risks for the insurance company have been reduced, the insurance company would be willing to give a cheaper quote for your car insurance premium.
Be sure to check the deductible on your Car Insurance policy. This will help you make an informed decision.
The decision to pick a policy with a high or low deductible or no deductible at all is up to you!