Having served Missouri’s farmers for over 100 years, Texas County Mutual Insurance is the go-to insurance company for all of Licking’s farm insurance needs. From farm liability coverage to auto insurance, our agents make sure that you fully comprehend your coverage options and how your rates are affected. One thing that affects your rates and coverage is your insurance deductible.

What Is A Deductible?

Your auto insurance deductible is the amount you pay out of pocket for damages from a car accident before your insurance company chips in. For example, say you were in a car accident in which you were at fault. The total cost of repairs for your vehicle is $2,500, and your deductible is $1,000. You would pay the $1,000, and your car insurance company would pay the remaining amount. If your damages were equal to or less than your deductible, you would be responsible for footing the entire bill.

How Does Your Deductible Affect Your Rates

Whether you’re discussing auto insurance or farm insurance, the same rule applies: the higher your deductible, the lower your insurance rates. This is because you are taking on more risk if you get into an accident, as opposed to your insurance company assuming most of the responsibility. Individuals who opt for higher deductibles often have faith that they won’t be using their coverage very often, if at all.

How To Select The Right Deductible

Typically, insurance companies allow you to choose a deductible of $250, $500, $1,000 or $1,500. When choosing your deductible, there are several factors to consider. First and foremost, you need to determine how much risk you are not only willing to accept, but also how much you can reasonably afford. This includes taking into consideration your finances (do you typically have $2,000 on hand to pay in case of emergencies?) and your driving record. If you’ve been involved in more than one auto accident in your driving history, it may be more beneficial for you to pay a higher premium with a lower deductible. On the other hand, if you have never been in a single car accident in all the years you’ve been driving, a higher deductible would make sense.

Whether you're looking for home insurance, coverage for your farm equipment, or other protection for your livelihood, our farm insurance agents at Texas County Mutual Insurance will help you determine the best deductible for your circumstances. To meet with one of our personable representatives today, call 573-674-3125. Visit our website to learn more.