What Insurance Deductible Should I Choose?

If you have an insurance claim, you will probably have a deductible that you will be responsible for before the insurance company will pay anything towards your claim.

A deductible is used as a tool to keep insurance premiums down. It is the portion of an insurance claim that is your responsibility. A higher deductible will save you money; a lower deductible will cost you more.

To save money, many people will select a higher deductible. However, this may not be the best choice as Rose found out.

Rose wanted to save money on her car insurance, so she chose a $1,000 deductible. She was able to save a few dollars every month.

Unfortunately, Rose was hit by an uninsured driver who refused to pay for her damages. It was at this point Rose realized that she did not have the $1,000 to pay towards getting her car fixed. She had selected a deductible that was too high.

Rose consulted a friend that was an attorney, but she could not get help since it was a very small claim and she did not have the means to pursue legal action.

In the end, Rose went to her bank and took out a loan of $1,000 to cover her deductible. With the $1,000 she was able to pay her deductible and the insurance company paid the rest to fix her car. The money she had hoped to save was now applied to pay back a bank loan.

What happened to Rose is not right. Unfortunately, it happens all too often.

When you look at your potential savings concerning the choice of a deductible, you should always begin with the question: If I have a claim, can I come up with the required deductible to pay towards my claim?

You should select the deductible that gives you the greatest savings, but it should be one that you can also afford.

Contact us at 520-888-6900 or send your question to service@browninsured.com for answers to your personal insurance questions