Should You Have Higher Deductibles On Your Coverage?
|
What is a deductible? A deductible is the amount you pay before your insurance carrier pays any claim. Insurance companies offer deductibles on certain coverage in insurance policies as a method of sharing risk with the people they insure. Insurers believe that if you, the insured, share some of the risk you will likely be more careful and try to minimize the possibility of a claim. Since you, the insured, pay your share before the company is liable for their share, smaller potential claims are often avoided.
What is the right deductible to carry? It depends not only on the particular coverage but further on your willingness and ability to pay the specified amount in the event of a claim. In other words, select a deductible based on your tolerance for risk. Your agent should be able to help you choose a deductible that is right for you. Often, the decision is an easy one as insurers may only offer a few choices in deductible for a specific coverage.
Typically, which type of coverage offers a deductible? The most common type of coverage with a deductible is physical damage (also known as comprehensive and collision). This is coverage for your vehicle itself. For damage caused whether or not at fault. In many cases if you have borrowed money to purchase your vehicle through a bank or credit union, the lien holder will require that you carry this coverage. This coverage is usually required in the event any damage occurs while you are still paying for the vehicle. Typical physical damage deductibles are $250, $500, and $1000. Higher deductibles will reduce the cost of your insurance by lowering your premiums. When evaluating higher deductibles, it is a good idea to consider carefully your circumstances. Ask your insurance provider for quotes for various deductibles, and analyze them carefully before making a decision. The higher the deductible is on a specific coverage, the lower the premium for that coverage. This is a great way to save on the total cost of your policy. For example, increasing your deductible from $250 to $500 could reduce the physical damage portion of your policy from 15% to 30% depending on your insurance carrier.
Another type of coverage typically offered with a deductible is Personal Injury Protection or PIP. This coverage is also sometimes referred to as No Fault. "No Fault" insurance is a general term that is used to describe any auto insurance system that not only requires drivers to carry insurance for their own protection, and places limitations on their ability to sue other drivers for damages. In an accident, under no fault laws, your auto insurance company will pay for your damages (up to your policy limits), regardless of whom was at fault for the accident. Any other drivers involved will be covered by their auto insurance policies. Not every state requires this type of coverage. No Fault is required if you live in:Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah or D.C.
No Fault is usually offered with or without the option of a deductible. You can choose to purchase this coverage with a deductible if you want to absorb some of the risk as with other coverage such as physical damage. As with physical damage, the higher the deductible, the lower the premium on the No Fault portion of your policy. Your agent may recommend taking a deductible on your No Fault if you have health coverage elsewhere since you can only make one claim on any one injury. Some health insurance policies exclude automobile accident so it may be wise to check with your healthcare provider to make sure you are covered if you decide to go with a deductible. Common deductibles options on No Fault are $0, $250, $500, and $1000.
Visit http://www.carinsurance.com to Set Your Deductible
Erick Pace is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.
CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.
Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online...anytime!
|
|
|
Should I Buy Rental Car Insurance?
Rental car agencies have a menu of insurance policies they would like to sell you. While each policy could be of some benefit under the right circumstances, you should review each plan (its provisions, limitations, and exclusions) before making a purchase. It is a good idea to request the detailed information from an agent at the rental office, as most companies only provide a summar...(related: Insurance)
Consumer Directed Health Plans
Most of you have heard about "consumer directed health plans". The Bush administration has been a strong supporter of this concept as a way to get a handle on soaring healthcare costs. The recent inaugeration of Mr. Bush signals that consumer directed health plans will increasingly make up a larger percentage of group medical plans over the next several years. In the past, consumer directed plan designs have taken on many forms: Medical Savings Accounts (MSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs).Many experts consider HRAs and HSAs to be the first generation of viable consumer directed health care products. HRAs are typically pair...(related: Insurance)
Reducing Soaring Insurance Claim Costs
With the soaring rise in claims to insurers from their customers, millions of pounds are being lost on a day to day basis throughout the industry in regards to personal property insurance. A new system in the UK provides insurance companies with an easy and effective method ...(related: Insurance)
Natures Fury - Time To Check Your Insurance
The communities of Exmouth and Moora in Western Australia don't have a lot in common with Sydney.But this year there is a uniting bond. All have felt the full force of Mother Nature.Flooding in the Wheatbelt town of Moora caused an estimated $10 million dollars worth of damage to homes and property. Cyclone Vance ripped through Exmouth in the North West of the State costing the community millions more. Sydney's hailstorm bill has topped $1 billion and is still rising.All this is a timely reminder...(related: Insurance)
Talking To Your Parents About Insurance
Who can you talk to about auto insurance? Insurance agents are a good source. However, due to their life lessons, their love, and their own f...(related: Insurance)
Do You Pay Too Much For Your Car Insurance?
Do the premiums just seem to get higher and higher every year?It is amazing how many people just receive their insurance renewal when it is sent out each year and pay it off without a second thought!But, at the back of their mind, is this niggling feeling of discontent about the amount they are paying. Unfortunately many feel there is ...(related: Insurance)
Health Savings Account (hsa): Helpful For Older People?
The Health Savings Account (HSA) is an amazing tool that a lot of people have been talking about. It is meant to help you save money on insurance and make your life simpler, maybe even help you be healthier.But do HSAs work just as well for older Americans? The answer depends on your age.Let's start with someone older than 65. Once you turn 65, you are eligible ...(related: Insurance)
Free Money Saving Auto Insurance Tips
Our money saving auto insurance tips were written for one reason - To Save You Money on your next auto insurance policy....(related: Insurance)
Who Sets Auto Insurance Rates?
Auto Insurance rates are a complicated business. Have you ever wondered who sets your auto insurance rates and how the rates are actually derived?Many factors determine how much you will pay. Most of these are common sense and you probably already know but let's go over them just in case.The very first thing that occurs is that the insurance company determines all its costs for the previous year. This includes all claims, the cost of opera...(related: Insurance)
How Does Credit History Affect Car Insurance Rates?
Many personal car insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new car insurance, keep in mind that many insurers are ...(related: Insurance)
Private Medical Insurance- Finding The Right Policy For You
Why Private Medical Insurance Is Becoming So PopularRecent research indicates that the vast majority of consumers take out private medical insurance because they are concerned about the length of waiting lists for treatment in NHS hospitals.68% of those questioned in a recent online poll, said that they wanted to receive treatment when it was needed rather than having to take their chances with the NHS waiting lists. In other words the failure of the NHS to deliver is directly responsible for the growing popularity of private medical insurance in the UK.Benefits of Private Medical Insurance Over The NHSWhereas the shortest waiting period for general surgery on the NHS is 32 weeks, those covered by private medical insurance are able to receive treatment as and when they need it, in a hospita...(related: Insurance)
Why Would I Need Auto Insurance Specialists?
If you do not understand the way that auto insurance works, you really need to deal with auto insurance specialists. These are the agents that work for the insurance companies and they can answer any questions you might have. You don't have to get the auto insurance policy through the company because a quote and information is free. When you need to find out how the automobile insurance industry works, your best source of information is from auto insurance specialists.If you have classic, vintage autos, you really do need to have them insured, even if you don't drive them. Think about all the money you would lose if one of these cars were stolen. The Classic Auto Insurance Company has the auto insurance specialists you need to get the right policy for your classic cars.Many of the auto insurance progra...(related: Insurance)
Millions Of Americans Have No Life Insurance
Only 61% of adult Americans have life insurance (down from 70% in 1984).Only 41% of adult Americans have individual life insurance, many rely on group insurance leaving them vulnerable if they lose their...(related: Insurance)
site-map - Copyright © 2006 Insurance | All Rights Reserved. | Insurance