When it comes to your security on the roads, you must have the right auto insurance policy that provides you with the most protection. While only auto liability is required by law, both comprehensive and collision coverage provide you with the protection you deserve. These coverage options provide your ride with sufficient care and coverage so that you can recover with ease from varying situations.
When you purchase auto insurance, you will be required to assign deductibles to your coverage. When it comes to determining the right deductible amount, you will need to consider multiple factors. While choosing a higher deductible will grant you inexpensive premiums, you must be ready to pay that elevated deductible once it comes time to file a claim before you will receive any coverage. Therefore, you will want to consider the following when determining the appropriate deductibles for your collision and comprehensive coverage:
- What is the value of your emergency fund? Have you saved enough to help you should a disaster occur? If you select a $1,000 deductible, would your emergency fund run dry after you paid your dues? These are important considerations if you do not have the financial means to pay your deductible out of pocket.
- You will also need to analyze your driver risk. This means determining your likelihood of being involved in an accident by making a list of the areas you most commonly drive. For example, if you frequently drive in congested areas with busy intersections, it may be wise to choose a less expensive deductible.
- Once you determine the value of your vehicle, you will be able to determine an appropriate deductible. Assigning an elevated deductible to a car with high value is logical since your savings can be substantial.
Serving Sacramento, Davis, and all of California, contact Purves & Associates Insurance Services for all of your auto insurance needs. Are you ready to seek optimal protection and add collision and comprehensive coverage to your policy? Do not hesitate to give us a call!