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