Is a High Deductible for Auto Insurance in Glendale, AZ, a Smart Decision?

Car insurance is a necessity, but it’s also one of those tricky subjects that most drivers have an idea about without really knowing the details. It’s a purchase you make and hope you never have to use.

At Henderson Anderson Insurance, we are well-versed about auto insurance in Glendale, AZ, and want to address a question we often hear from customers. “Is choosing a high deductible for car insurance a good decision?”

Since it comes up regularly, we feel it’s best for our clientele to have all of the details they need to make an informed decision. It’s better to know now than to find out later on if you’re confronted with a high deductible during a claim.

The first thing we’ll do is define what an auto insurance deductible is to clear up any misconceptions. A deductible is the amount of an insurance claim that you pay out of pocket. For example, if you have an accident with $5,000 in damages and your deductible is $1,000, you pay $1,000, and the company pays $4,000.

A higher auto insurance deductible generally means your monthly payments are lower because the insurance company is on the hook for reduced costs if you make a claim. With a low deductible, your coverage is greater, and you pay less in the event of a collision.

The answer on which is better — a high or low deductible — is one that depends on many factors. You need to take into consideration how much you can afford to pay each month and how much you want to pay.

Also, the decision can rest on your driving style and the amount you drive. If you are on the roads a lot and drive a bit more aggressively than another driver, it might be a good idea for you to have a lower deductible. In that case, the odds are higher you might end up filing a claim, and with a reduced deductible, your out-of-pocket expense following an accident will be lower.

If you’re a safe driver who doesn’t travel much, a higher deductible is a good option for you. Either way, if you have any questions, we’re happy to answer them for you.