The amount a driver pays for auto insurance premiums is determined by a myriad of factors. These include the year, make, and model of the vehicle they drive, their driving record, their credit score, where they live, the types and amounts of coverage that are added to the policy, and the deductibles they choose.
Insurance Companies And Deductibles
Auto insurance deductibles are like get out of jail free cards for insurance companies. They don’t have to pay their insured’s damages until the deductible amount is surpassed. The amount of the deductible can greatly significantly affect the monthly cost of comprehensive and collision protection and the cost benefit should be carefully considered. Insurance providers are in the business of managing risk and costs. Since much of the damage caused to vehicles comes in the form of small scratches, scrapes, dings and broken windshields, insurance companies don’t want to pay and manage the claims of each and every mishap of their insureds. Deductibles are a way of protecting the coverage provider against minor damages that are very common among vehicle owners, but can really add up.
