Choose the right deductible amount for your Batavia, IL policy.
Before you select an average deductible amount on your auto insurance policy, be aware of what this means and how certain amounts affect you. Firstly, a deductible is the amount of money the policyholder must pay before their policy kicks in for an auto insurance claim.
For example, if your car needs $5,000 in repairs after a covered event (a crash, vandalism, theft, or weather-related damage), and your deductible is $500, you will need to pay $500 and your insurer will cover the remaining $4,500. Bear in mind that an auto insurance deductible is for each claim. If you get into three crashes, you’ll need to pay $500 for each claim.
However much deductible you choose, you must have the cash to back it up. If you choose a low deductible, think carefully before you make a claim. If you have a deductible of $250 and you need $300 in repairs, you may think this as an unnecessary claim. If you were to file a claim for the remaining $50, your insurance rate may increase!
Deductibles are all about risk. If your policy has a high deductible, there is less of a chance you’ll be calling on your car insurance carrier to cover expenses, therefore you’ll be less in your premium each month. If your deductible is $1,000 and you are paying much less per month, note that you will need to have $1,000 on hand in case of those repair costs. If you are in a financial position where you are unable to hand out $1,000 worry-free, you may consider a lower deductible, which means a lower payout cost.
For all of your insurance questions, queries, and coverage, contact Insurance and Mortgage Services! Serving Batavia and the surrounding Illinois areas, we provide auto insurance to suit your needs, vehicle, and finances without sacrificing all-encompassing coverage!