Do Higher Deductibles for Car Insurance Save Money?

Single Mom Financial Help

This article, entitled Do Higher Deductibles for Car Insurance Save Money? comes from

When it comes to pricing insurance there are many variables which help you decide. First and foremost is often the monthly cost of the insurance policy. As a single mom you have a budget and will need to make sure that you get the best possible coverage that fits into your financial ability.

Many insurance policies have a lower monthly rate if you choose a policy with a higher deductible. Keep in mind that the deductible is what you will pay out of pocket before the insurance will touch your claim.

In the event of needing to make a claim if you have a several thousand dollar deductible you may end up paying more than you would for the monthly rate on a policy with a lower deductible.

To make a decision you must first look at your finances and see whether paying a little more each month is better for you than having to come up with a large chunk of money in the case that you need to make a claim.

Car insurance is one where many times a high deductible is not something you want. If you have an accident the body work alone could cost several thousand dollars and that’s not even accounting for actual mechanical problems which could leave you without a car or having to rent a vehicle until yours is repaired.

Your high deductible insurance may mean that your car sits in the shop for weeks while you attempt to come up with the cash to cover the deductible. If you have a low deductible you’ll pay your minimal amount, insurance will cover the rest and you’ll be back on the road quickly.

In most cases a high deductible is suitable for someone who has plenty of extra money in their budget, or an emergency savings to tap into. Is the few dollars less per month worth the worry of having to pay a large deductible if you must make a claim?

This is a decision that only you can make, but it’s definitely worth some thought and time spent examining your budget to see what works best for you.

For more information please visit

Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
$cms.template("HTML5 Vibrant Media")