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Wk7DQ2 - premiums Although low deductibles may seem like a...

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The deductible is the amount you must pay toward a claim before your insurance begins to pay. For example, if Barb had a $5000 claim and her policy has a $1000 deductible, she will pay $1000 and her insurance will pay $4000. Selecting higher deductibles is one way to reduce your premiums. Although you are able to choose any deductible you want, some deductibles may be inappropriate for your needs. The level of your deductible will directly impact the premiums you pay for your auto coverage. When you set your car insurance deductible, your main concern should be how it will affect your
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Unformatted text preview: premiums. Although low deductibles may seem like a better deal, they will raise your auto insurance rates considerably. The less you are willing to pay in the event an accident, the more your insurance company will charge you for coverage. You do not know if you will ever have to file a claim, so therefore you may never have to pay your deductible. However, you do know that you will have to pay your car insurance premiums, so it makes more sense to keep your deductibles high and your premiums low....
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