Yes, you can lower your car insurance deductible at any time by contacting your car insurance company and telling them what you would like your new deductible to be. Lowering your deductible will make your out-of-pocket costs cheaper if you need to file a claim, but it will also result in higher premiums. When you lower your deductible, the change will take effect immediately and your premium will be higher the next time you pay.
You cannot afford to pay much out of pocket. If you do not have a lot in savings, would prefer to pay less when you file a claim, and are comfortable paying the higher premium month-to-month, then lowering your deductible is a good choice.
Your deductible is similar to the value of your car. You should lower your deductible if replacing your car would cost nearly as much as paying your deductible. If you have a $1,500 deductible and your car is worth $2,000, for example, your deductible is likely too high.
A deductible is what you have to pay out of pocket when you file a claim before your insurance kicks in and covers the remainder up to your policy limits. To learn more, check out WalletHub’s guide to car insurance deductibles.
A $1,000 deductible is better than a $500 deductible if you can afford the increased out-of-pocket cost in the event of an accident, because a higher deductible means you’ll pay lower premiums. Choosing an insurance deductible depends on the size of your emergency fund and how much you can afford for monthly premiums.
How to Choose Between a $500 and a $1,000 Deductible
A good deductible for auto insurance is an amount you can afford after an accident or unexpected event, although most drivers pick an average deductible of $500. Other common auto insurance deductibles are $250 and $1,000, but drivers should take several factors into account before deciding which one is right for them. These include what premium they can afford and how likely they are to file a claim.
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