High deductible or low deductible: which is right for your needs?

When you take out a homeowners or auto insurance policy, you will have the option of choosing between a plan with a high deductible or a low deductible. By choosing the right deducible for your needs, you will make sure that your policy provides you with proper coverage in the event that you experience an accident or major losses. Let’s take a look at how you can decide between a high or low deductible.

Understanding deductibles

The term deductible is used to describe your out of pocket expenses. In the event that you experience a collision or home disaster, you will be required to cover the minimum deductible, before your insurance coverage will start. If your insurance policy has different types of coverage, each form of coverage may require its own separate deductible.

High deductibles

If you choose an insurance policy with a high deductible, you will be responsible for more out of pocket expenses in the event of a collision or losses to your home. While you will pay more for repairs, you will also be responsible for lower monthly insurance rates. If you are interested in paying less each month, you may want to choose a high deductible.

Low deductibles

With a low deductible, you will pay less from your own pocket before your insurance kicks in. A lower deductible will provide you with increased coverage in the event that your car or home is in need of repairs. With a lower deductible, you will also pay more each month for your plan.

For help deciding on the right deductible for you, contact ClickQuoteInsure.com of Naperville by calling 855-55-QUOTE  (855-557-8683). The independent insurance agents at ClickQuoteInsure.com will work with you to create the perfect insurance policy for your needs.

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