Auto Insurance

High Deductible Auto Insurance Reduces Premiums. One of the ways drivers are reducing their insurance costs is through high deductible insurance plans for the auto insurance. As more states pass laws requiring driver to carry a minimum amount of insurance, often referred to as financial responsibility laws, many are having trouble affording the premiums due to a variety of circumstances. By opting for a high deductible, the monthly payments can be reduced and satisfy the requirements of the law. This may be especially helpful for lower income drivers, but if they do incur an accident, they be unable to have their care repaired if they are unable to afford to pay the deductible. Typically, there can be separate deductibles for liability insurance and comprehensive insurance and if the person who is considered at fault for the accident cannot afford to pay the deductible on the liability portion, the insurance company usually pays and then goes after the driver for payment of the deductible.

With a high comprehensive insurance policy, the driver’s vehicle may sit in the repair shop until paid in full, taking away their transportation needed for work. While the premiums may be lower, they could still lose access to their vehicle if they cannot afford to have it fixed.

Those owning older cars often only carry liability insurance to protect against responsibility for another person’s vehicle if they cause an accident. They may consider themselves to be excellent drivers, playing the odds that if they are involved in an accident it will be the other person’s fault and their insurance will pay.