One of the worst things about car insurance is the deductible. If your car gets stolen, damaged, or vandalized, your insurance company will ask you to pay the deductible before they start to reimburse you for your loss. But there are ways to avoid paying the deductible, if you’re willing to do a little extra legwork.
What is a car insurance deductible?
In essence, a deductible is how much you’re required to pay in order to get covered for your car. Typically, you pay a deductible by adding a $50 service fee to your premium. This fee is usually deducted directly from your paycheck. You can usually set aside a sum of money for this purpose each pay period. If you get into an accident, and a deductible is necessary, the first $50 is your deductible, and the remainder of your deductible is applied as part of your premium. What if I already have car insurance? The problem with having car insurance is that your premium will always go up to compensate for a deductible. For example, if you have a car insurance policy for $300/month, your premium will rise to $400/month if you have a $500 deductible.
How can you avoid paying the deductible?
You might be able to keep the amount of damages down by finding a used car that hasn’t yet had a claim filed against it. Your insurer may even be able to switch you to a lower deductible and pay for it out of your own pocket. But this may require some extra research and work with your insurance agent to see if this will be approved. If the current car you’re driving already has a high deductible, consider investing in a new one. This will mean that you will be able to get a car with a lower deductible. You may also be able to avoid the deductible entirely by switching to a different provider. However, this may mean that you will need to change your policy if you move. What to do if you have a high deductible?