When purchasing insurance coverage for your vehicles, there are two coverages on your auto insurance policy that require that you choose a deductible amount. Those coverages are commonly known as comprehensive and collision coverage. The deductible amounts you choose will increase or decrease your annual premium depending on what you choose is best for you.
Comprehensive, also known as other than collision (OTC), provides coverage for such things as glass breakage, vandalism, fire, theft, animal damage, hail, and flood.
Collision provides coverage when your car collides with something. It could be another car or an object such as a telephone pole or a fence.
Your deductible is the amount you have to pay first before the insurance company pays. Choosing a higher deductible will lower your premium while choosing a lower deductible will increase your premium.
Common comprehensive deductibles are $100, $250 or $500, although some insurance companies do have a $0 or $50 deductible available also. Collision deductibles are usually $500 or $1000 but a $250 deductible is sometimes also available. You do not have to have the same deductible on both comprehensive and collision coverage. And if you have more than one car, you can choose different deductibles for each car. With some insurance companies, you can choose to purchase a glass waiver deductible so that you don’t have to pay anything if your windshield or other auto glass cracks. The insurance company will pay for the glass repair and replacement.
So how do you choose which is deductible is right for you?
At Nulty Insurance, your agent will help you to find the right deductible for you by walking you through different scenarios along with getting a better understanding of your individual situation. We can provide you with the premiums for different deductible choices and you can then decide how much you’re comfortable with having to pay if you have a claim.
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