When buying an auto insurance, not only the value of your carhow many times you have accidents matters. Every auto insurance policies have what they call a deductible. This mean that in case of an accident, there is a portion of the repairing that you will be responsible to pay. Your insurance company will not pay 100% of the expenses.
So what incidence does it have on your premium? Let say that you have a collision and there is a $3000 damage bill. Depending on your insurance policy, you could have to pay, depending on your deductibles, usually $100 to $1500. These are the deductibles we usually see. Your insurance will pay the rest. What is the difference on the premium between a 1001500 deductible? Around 10 to 20% of your insurance cost.
If you are going to take a bigger deductible, the amount you pay each month will be lower. But keep in mind that you, and not your insurance, will have to make sure that this kind of money is somewhere in a treasure box under your bedelsewhere. I am not trying to know where you keep your money but not everyone have extra cash in case of an accident. And that is why they pay more each month because the risk is taken by their auto insurance company.
There is one good news about these deductibles. Most of car insurance companies are giving you the opportunity to use deductible calculators right at their website. No need to spend a sunny day calculating what is more suited for your needs and what is more suited for your budget. Just enter some numbers and they do the work for you. As you can see, car insurance deductibles are important because the higher you are willing to pay in case of an accident, the lower you pay until it happens.
Next, if you want to discover more tips and hints about the wonderful world of insurance, just have a look at my more than ordinary blog. [http://thehomeownersinsurancequotes.com] Okay, insurance might not be a so wonderful world but we all have to do it.