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What is a deductible?

A deductible is a designated monetary amount that a motorist must pay when his or her vehicle sustains damage due to an automobile accident. You are only required to pay a deductible if you have collision insurance or comprehensive insurance. You must also pay a deductible if you have any other sort of physical damage, like vandalism or weather related accidents, that occurs to your vehicle. When you purchase your insurance policy, you will select the amount of the deductible you are willing to pay in time of need. This can be changed at any time throughout the duration of your coverage by adding a rider. Should your vehicle be the object of theft, your deductible will be taken from the total amount of the insurance company's payout.

A thorough education about the ins and outs of choosing your car insurance deductible will aid you in making the proper decision for yourself. It is critical for you to know how the differing amounts of deductible you can choose from will affect you financially in the event that you must file a claim. It is common knowledge that choosing a higher deductible will allow you to pay lower insurance premiums each month. A lower deductible will, likewise, increase your premiums but will allow you to have a lower payout in the event of an accident. However, if you choose a higher deductible, you must ensure that you have the money readily available should you ever need it. If you do not pay your deductible, your insurance company will not pay any money towards repairing your vehicle. Only you can know the negative impact of being without your vehicle would have upon your life.

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