Car insurance premiums in Florida are among the highest in the United States, clocking in at an average of $1,596 per year in 2019. For Ocala drivers, the citywide average rate is slightly lower — about $1,400. But that doesn't mean that's what you'll actually pay for coverage. There are various ways you might be able to save on your rates. One of these is by increasing your deductibles.
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What Is A Deductible?
Portions of your car insurance, namely your collision or comprehensive coverage, will most likely include a deductible. A deductible is a specified amount of money that the insured must pay before an insurance company will pay a claim.
So, let's say you have a car wreck that results in $4,000 in covered damage to your car. Your collision insurance is supposed to pay for the car's damage. Still, there is a $500 deductible under this coverage.
You pay the $500 deductible up front. The insurer then deducts this amount from the total they pay for your car's repairs. So, from the $4,000 total damage cost, they will subtract the $500 you must pay. As a result, they will agree to pay you $3,500 for the damage, since ($4,000 - $500 = $3,500).
Why Can It Help Me Save Money?
You likely have a choice in how much of a deductible you want to have on your policy. For example, you might have choices like $500, $750, $1,000 or $2,000 for your comprehensive and collision deductibles. If you choose higher deductibles, your premium could be lower.
Is This The Best Step For Me?
While increasing your deductible might seem like a good idea, remember that a higher deductible equals more money you might have to pay towards a claim. Plus, if the cost of any damage falls below the cost of your deductible, then you will have to pay for that cost entirely on your own.
Therefore, you have to be able to afford any deductible you agree to shoulder. If you can't, then you might be out of luck when you need to repair the vehicle damage. Still, there are many other ways that you might be able to save on your policy besides raising your deductible. Let one of our agents help you review your coverages.
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