Andalusia, Alabama
300 E Three Notch St
Andalusia, AL 36420
(334) 222-1460

The Pros & Cons of High & Low Deductibles for Auto Insurance July 25, 2018

Andalusia, Covington
The Pros & Cons of High & Low Deductibles for Auto Insurance, Andalusia, Alabama

One of the most important differences between auto insurance policies is the deductible. This is the amount a policyholder is responsible for paying in case of an accident before the insurance company begins covering costs. Typically, deductibles can range from anywhere between $0 to over $1,000. Tim Bryan Insurance, in Andalusia, AL, shares the pros and cons of having high or low amounts. 

Low Deductibles

Minimize Unforeseen Expenses

If you want to drastically lower the chances that you'll have major unforeseen expenses during the year, a low deductible can be a great ally. A policy with a deductible of $100 or less means you'll never have to hand over too much money if anything happens to your car. 

Pay Higher Premiums

auto insuranceOn the other hand, lower deductibles mean higher premiums. If you pride yourself on being a very careful driver who rarely incurs damages, it may not be practical to pay extra money up front. Those who feel they may never cash in on their insurance often opt for less of an investment. 

High Deductibles

Lower Your Premiums

The relationship seems obvious: lower deductibles equal higher premiums, while higher deductibles result in lower premiums. But sometimes the proportions don't play out exactly as you might predict. With some policies, a higher deductible can save you a lot on premiums, sometimes as much as 40%. If you're paying, say, $400 less on premiums a year, a pricier deductible may be worth it. 

Have Less Peace of Mind

Even if you do find a way to save several hundred dollars a year on premiums through a higher deductible, you're sacrificing on peace of mind in the process. One accident, weather event, or incident of vandalism and you could be on the hook for $1,000. 

Whether you're looking for the best auto insurance policy or seeking to insure other valuable property, Tim Bryan Insurance will handle your specific needs. He offers various packages to individual and commercial clients, including home, business, life, and auto insurance. Call (334) 222-1460 today to schedule an appointment to discuss your situation. 

Other Announcements, Events and Deals from Tim Bryan Insurance
Why Life Insurance Is Important for Young Adults, Andalusia, Alabama
Many young people forego the option of buying life insurance because they feel they likely won't need it for many years or decades. That leaves too many of them — and their families ...read more
Your Guide to Term vs. Whole Life Insurance, Andalusia, Alabama
When you consider buying a life insurance policy, you discover there are two primary types: whole life and term life policies. They both protect your family financially, bu...read more
Top 5 Advantages of Buying Life Insurance, Andalusia, Alabama
Life insurance is one of the most effective ways to protect your family in case you’re no longer there to provide for them. It’s usually quite affordable, and it acts as a true guard...read more
When Should You Reevaluate Your Home Insurance Policy?, Andalusia, Alabama
Just as a home insurance plan isn't a one-size-fits-all arrangement, the same policy layout isn't likely to work for your needs over the span of your ownership. To maintain adequate ...read more
3 Everyday Driving Tips That Help Increase Safety , Andalusia, Alabama
Although some car accidents are unavoidable, many can be prevented by taking extra precautions whenever you get behind the wheel. Practicing safe driving will not only help to k...read more