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What do I need to know about Texas auto insurance deductibles?

What is an auto insurance deductible?

After selecting the type of specific auto insurance in Texas, the next most important thing to consider is the amount of deductible. This will make a huge difference in your annual auto insurance premiums and the amount you could end up saving. But what exactly is it? An auto insurance deductible can be defined as the amount of payments you make out of your own pocket before your Texas car insurance carrier starts paying for the additional expenses and costs. Here is an example; if you have a $1,000 deductible and you get involved in an accident, in which the damage estimate is $2,000, then you are required to pay $1,000 and only then will your auto insurance company pay the rest of the amount i.e. $1,000

What are the advantages of high deductible auto insurance?

Basically the deductible amount represents the amount of your own money that you willing to pay for the initial costs incurred in repairing the damaged vehicle or property and expenses incurred in medical and other services offered to an injured person or persons. This makes it a big determining factor for your insurance premiums. The upside is, if you are willing to part with a higher deductible, then you end up saving more money on the monthly auto insurance premiums which accumulates to a substantial amount annually. The difference between a $1,500 deductible and a $250 deductible could be an astonishing $500 depending on your Texas car insurance carrier. If you do the math, you could be saving over $40 every month. In just two years, you will have saved a whooping $1,000 through deductibles.

How then, do I choose the best Texas auto insurance deductible amount for my policy?

This decision is yours and yours alone. It cannot be made by any other party including your auto insurance carrier or agent. To help you make the decision, here are a few questions that only you can answer to push you in the right direction;

ñ  Will the savings you get from your premiums bear out the risk of having a high deductible? Consider this – if you are an excellent driver with a clean driving record and are a low risk when it comes to proneness to accidents, and at the same time the premium savings are considerable, then it would be in your best judgment to go for a high deducible as opposed to the lower deductibles.

ñ  How much do I have in my savings account? Look at the amount of money you have before making a decision that would simply be unwise e.g. if your savings account has $380, going for a $1,000 is imprudent. On the other hand, if you have a savings account with $20,000 you can comfortably aim at a $2,000 deductible and so forth.

Above are just but a few questions and I bet you may have many more issues you want to be enlightened on. If you need more information on deductibles or other issues on auto insurance in Texas just enter your zip in the slot at the beginning of the page and get some really informative results.