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Although paying for car insurance isn’t something people enjoy, it’s a necessity that can’t be avoided. Even still, there are some factors that play a role in determining how much you pay for your policy each month, such as your deductible. Your deductible is the amount you pay out-of-pocket for work on your car, and depending on how high or low it’s set, your premiums may be more or less expensive.

Understanding the financial details of any car insurance policy can be complicated. To make it simpler, the experts from Lafever Insurance Agency in Cookeville, TN, have provided their knowledge to help you better understand the basics of your deductible.

car insuranceWhen you select your car insurance policy, you choose the deductible you want to pay. This is the amount that needs to be met in case of damage to your car for insurance to help cover it. For example, if your repairs cost $800, and your deductible is $500, your insurance would cover $300. But if your repairs cost $400, you would be responsible for covering the full amount.

Monthly premiums also fluctuate depending on the deductible you choose. A cheaper insurance policy that offers the minimum amount of coverage usually means a high deductible. So, although you may save every month on your premium costs, if an accident does occur, you may end up paying a hefty amount to cover any necessary repairs for either yourself or the other driver. As such, it’s best to choose a plan with a premium and deductible that fits both your budget and the value of your car. 

If you have further questions about car insurance deductibles and premiums, or you need to select an affordable insurance plan for your vehicle, turn to the team at Lafever Insurance. They have over 30 years of experience creating personalized insurance plans for their clients. Give them a call today at (931) 526-3377 or visit their website to view their policy options and request a quote.

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