When it comes to shopping for insurance, each client is a little different from one another. Some clients are more risk averse and others are willing to take on more.

When it comes to selecting a collision deductible, each of these risk types have different opinions. Let’s keep in mind that insurance is cost sharing. The insurance company is willing to accept a certain amount of risk as is the policy holder. When an insured driver is determined to be at fault in an auto accident it is the insurance carrier’s responsibility to help pay for repairs to the vehicle(s) damaged in the incident.

Collision Deductible

An adjustor will evaluate the damage done to the insured’s vehicle and then subtract the deductible amount from the payout. For example if there is $5000 worth of damage and a client has a $500 deductible, the adjustor will issue a check to the body shop of your choice in the amount of $4500. The policyholder will then be responsible to pay the body shop the remaining $500.

Controlling Auto Insurance Costs

Collision deductibles can be as high as $1000 or as low as $100 with different price points in between. Your deductible level will have an impact on the total insurance premium. The more risk i.e. higher deductible a policyholder is willing to take on the lower the premium. The lower the deductible the higher the premium because the insurance company is going to have to pay more the claim.

Someone who is risk averse will prefer a low deductible because they like the idea of knowing they only need to come up with a $100 or $150 to get their car fixed and therefore willing to pay a little more for this extra security.

As your local Wexford, PA independent auto insurance experts, it is our job to help you, the client, with determining the optimal level of comfort and find the right balance between price and deductible level with your auto insurance policy.

Give us a call today at 412-238-8200 to see how we can help you to determine an appropriate auto insurance deductible today!