Most auto insurance plans call for policyholders to pay a certain amount of out-of-pocket costs if an accident occurs. The figure is called a deductible, and, depending on the plan, can typically range anywhere from $500 to more than $1,000. With a bit of homework, you can choose a product with a budget-friendly deductible that doesn't sacrifice comprehensive coverage.

3 Factors That Affect Auto Insurance Deductibles

1. Commute Activity

One of the key factors to consider when choosing an auto insurance deductible is how often you drive your car. Many people rely on their vehicles to commute to work, school, and around town. Others take frequent road trips for business reasons. If your daily mileage is consistently high, it may expose you to more situations that can trigger having to file insurance claims. In this case, a low deductible may mean paying less of out of pocket for damage caused by accidents or criminal activity.

2. Affordability

If you were to get in an accident, how much could you afford to pay for repairs on your own? The answer will help guide you towards selecting a low or higher deductible. If you know you likely won't be financially able to shell out a huge amount of cash upfront, go with a low figure. Keep in mind your premium payments may be higher as a result. Likewise, if money is readily available after an accident to pay for repairs, consider a larger deductible.

3. Driving Habits

Some people consistently drive fast while others prefer to be cautious. Your habits can determine whether it’s more feasible to have a low or high auto insurance deductible. If you’re prone to fender benders, filing claims with your carrier are more likely. Consider paying a higher deductible as a layer of added protection. Unfortunately, some providers will increase the premiums based on the number of claims a policyholder files.

These are just a few factors to think about when determining deductible payments. If you’re still unsure, the team of agents at CIS Insurance in Dumas, TX, will help you choose the right product for your lifestyle and needs. They specialize in offering budget-friendly auto insurance policies designed for unique driving habits. To get started, call (806) 935-6512 today. Visit the website too to learn more about plan options.