Choosing an auto deductible: can your budget handle a claim?
Compare the premium savings with the cash you would need after a covered loss before raising your auto insurance deductible.
Key takeaways
Compare both deductible amounts on the quote.
Keep claim money separate from the monthly premium.
Request the same coverage limits when comparing options.
Start with the amount you could pay today
A deductible is your share of a covered loss. A higher deductible often lowers the premium, but it also changes how much cash you need when something happens. Write down an amount you could pay without missing rent or another essential bill. That is a more useful starting point than simply choosing the cheapest quote.
Compare the savings over the whole policy term
Ask for two quotes with identical limits, drivers, and vehicles, changing only the deductible. As an illustration, saving $12 a month means $144 over a year; raising a deductible from $500 to $1,000 adds $500 to your share of a covered claim. These are example figures, not a Cardona's quote. Compare collision and comprehensive separately.
Bring a short comparison sheet
For a review with Cardona's, bring your declarations page and the competing quote. Note each deductible, the total term premium, and any lender requirements. Ask what the proposed change means for your specific car before authorizing it. Keep the final policy documents so you can verify that the selected amounts match the conversation.
- Current collision and comprehensive deductibles
- Amount available for an unexpected repair
- Written price for each option and its effective date
Common questions
Does a deductible apply to every insurance payment?
No. It depends on the coverage and policy. Ask which deductible applies to the specific type of claim you are discussing.
Is the higher deductible always a better deal?
No. Consider the savings, your available cash, and any financing requirements together.
