How Much of a Deductible Should I Take on My Car Insurance Policy in Burlington, NC?

Even though you may be able to save a couple of hundred dollars on your auto insurance policy by requesting a high deductible, in the long run, it may wind up costing you more money. In Burlington, Mebane, Graham and all other cities and towns throughout North Carolina, when you purchase comprehensive and collision coverage, you have a choice of how big or small a deductible to choose.

Even a very minor accident can cause thousands of dollars in repair costs. As your independent agent, we can help you decide what the proper size deductible should be on your North Carolina auto policy. As a general rule, you should keep your deductible low enough so that it will not be a financial burden if you need to file a claim.

A policy holder assumes financial responsibility for that portion of the entire claim thet falls below the level of their deductible. If your deductible is higher than the amount of the damage, you will have to pay the entire cost of the repair.

When you finance a new vehicle, the lender may require you to keep the amount of your deductible down to a reasonable level. Deductibles that are too high reduce the value of your collision and comprehensive portion of your auto policy. If you choose a $2,500 deductible because it does not make your car insurance policy go up by more than a few dollars, that usually indicates that there is little chance of ever being able to collect on that policy.

No matter if your car is worth $5,000 or $25,000, deductibles should be based on how much risk you want to assume for damage to your vehicle. For peace of mind, try to keep deductibles as low as possible. When an accident occurs, you will be glad you did.