What Is an Auto Insurance Deductible?

Reader’s Question:

I have no idea what a deductible is in car insurance. What is a deductible?

Myers

Chicago IL

Prudent insurance buyers would always find a strategy to decrease their car insurance prices. Over time, people have found tactics on how to do this. One of which is by stretching deductibles. So what is a deductible?

Insurance deductible is the money that you would have shell out for the damages incurred by your car during an accident. It is also a portion of the total estimate for car replacement that you would have to shoulder. This will become your personal expenditure. It might not sound approving on your part to compensate for something that you were anticipating to be covered. However, this is what they consider a necessary evil in order to extract savings from your car insurence expense.

Most car insurance companies provide range of insurance deductible for you to avail. They amount to $100-$1,000. The most customary value chosen is $500 dollars. The most optimal value for the highest deductible is $1,000. However, you can transcend to a higher deductible if your budget permits you to do so.

You really have to think in choosing what range of deductible you will be availing. This is to ensure that by the time you have to make claims; you will not end up having to pay for entire cost of damage.

Choosing the amount for your deductible should also be a balance. It can also help if you know yourself well as a driver and if you know your finances well. As they say, if you have had history of accidents, then it might not be smart to increase your insurance deductible. However, if you are so sure that you can go on years without accidents, and if you are sure, you are a better driver, why not go for the highest insurance deductible. You should also be sure to have the deductible amount set aside at all times.

Car Insurance Discounts For Senior Drivers

Reader’s Question:

We are senior drivers here and my granddaughter told us that we could get a lot of discounts for being a senior driver. Can you tell me how we could lower it please?

Harry

Phoenix AZ

1. Seniors are able to avail of their car insurance discounts through the American Association of Retired People (AARP) and their local senior outreach and senior advocacy programs.

2. Specially-designed defensive driving courses for seniors often lead to auto insurance discounts.

3. A safe driving record is not an accident. To have a ticket and claim-free insurance record is one of the main undisclosed discounts.

4. If seniors reside with another adult, they should check if a combined household policy will provide them multi-car discounts.

5. The senior citizens’ discount car insurance is usually the result of these seniors not driving as much as they once did and subsequently making them eligible for low-mileage discounts.

6. Insurance is for those seniors who are still driving. However, if they have a vehicle, they need to insure that vehicle for the person who will be driving for them.

7. Seniors with cars that are paid off should ensure that they are not over-insuring their vehicle, considering depreciation.

8. By having safety equipment in their cars, seniors can also benefit from discounts. Though, most of the time, they are not aware of the newest safety features and may fail to report to the insurance company.

9. Many insurance companies provide seniors with accident forgiveness. Given this, the first accident will not affect the insurance rates.

10. If seniors meet an accident, they would not opt to replace their car with a new car. By getting rid of new car replacement insurance, they can save on unnecessary coverage.