Choosing your deductibles to save money

Let us guide you on how to choose your deductibles

Choosing your deductibles should not be taken lightly. A higher deductible amount means a lower insurance premium. Conversely, a lower deductible means you’ll receive a higher amount in the event of a claim. So what’s best? It is all a question of finding the right balance. Here’s some information to help you make an informed decision.

National Bank General Insurance
26 November 2015

What can you afford to pay?

The first question that you should ask yourself is: what is the amount I can afford to pay if I have to file a claim to my insurer?

When your vehicle has to be repaired, the auto insurance deductible is the amount that you pay out of your own pocket while the insurance will cover the rest. Seen in this light, it may be tempting to take the lowest possible amount of deductible, but then you’ll pay higher insurance premiums.

What is your reason for getting insurance?

Of course, liability insurance is not optional, it’s mandatory. However, whether you insure your vehicle for damage is your choice and you probably have a reason for doing so.

Some choose theft or total loss only coverage: they will not make a claim for small amounts and so they have no reason to choose a lower deductible.

Others choose to cover anything that could happen, small and big alike. This could be a good reason to opt for a smaller deductible.

One or several deductibles?

Deductibles can also vary depending on the type of coverage. For example, you could choose a higher deductible for collision and a lower deductible for glass breakage.

The advantages of choosing of a higher deductible

The savings from a high deductible can make a real difference. If you don’t have a claim for several years, your long-term savings will be greater than the amount of deductible to be paid in case of a claim. You might even never pay any deductible if nothing happens to your car and take advantage of the discount on your insurance premium for a long time!


*Certain conditions apply.

Legal note



Follow Us


Discover our Insurance Solutions

Discover our Insurance Solutions

On the same subject
7 things you need to know about child car seats
7 things you need to know about child car seats
National Bank General Insurance - 14 June 2016
Child car seats cost a few hundred dollars, so it can be tempting to buy one second-hand or in the United States, or to hang on to an old seat for a long time. Be aware, though, that this is not recommended practice, and is even illegal in some situations. Read more
Plan like a pro with our moving checklist!
Plan like a pro with our moving checklist!
National Bank General Insurance - 10 June 2016
What's the secret of a successful move? It's all in the planning. Our detailed checklist tells you what you need to do and when, so you won't forget a thing.  Read more