Choosing the right auto insurance deductible can be crucial

Your auto insurance deductible can be a very important factor in determining your auto insurance premiums. There is always a chance that your deductible is set too high- or too low for your needs. The bottom line is- there is no such thing as an "ideal" deductible for all drivers. The perfect car insurance deductible is one that works specifically to suit your needs. Here's the lowdown:

A deductible that is set very low does not force you to pay as much money in the event of a claim. Unfortunately, however, the lower your deductible the higher your monthly premium may be.

A deductible that is set high is one that will demand for you to pay the most amount of money out of your pocket in the event of a claim. The good side of having a higher deductible is that it will make your monthly premium lower.

Your best bet? Have your car insurance deductible be somewhere right in the middle.

Determine your Deductible

A good rule of thumb is to think about your household income and your personal wealth. If you were to experience a car accident today- what amount of money would you feel comfortable paying as your deductible? If your current deductible is higher than that amount- make it lower! If you could easily afford to pay more- you might want to increase your deductible in order to lower your premium.

Review that policy!

Every so often make sure to review your auto insurance deductible and consider the following questions:

Has my household income changed since I set this deductible?

Does this deductible still reflect the amount of money I would be able to pay in the event of a claim?