Every state requires you to carry minimum liability auto insurance. Each state has its own minimum liability requirements. However, liability insurance only covers the other driver’s car and injuries if you are involved in a vehicle accident.
To cover your own car, you’ll need comprehensive and collision insurance, also known as “full coverage” auto insurance. This insurance coverage pays for physical damages to your car if you are in an “at fault” accident. When you purchase full coverage auto insurance, you will need to choose a deductible. This is the amount that you’ll have to pay upfront before the insurance company pays anything toward repairing your vehicle.
A lower car insurance deductible means you’ll have to pay less out of pocket to have your car repaired, but it is also more expensive. A higher auto insurance deductible limit means your car insurance premium will be cheaper, but you’ll also have to come up with more money before the insurance company begins paying for repairs to your car.
There are a few things to keep in mind when choosing your deductible limits. For an older car, paying a high price for a low deductible may not make financial sense. The insurance company will only pay market value for the car, so you may want to choose a higher deductible or not carry comprehensive and collision insurance at all if you think you can feasibly pay for the repairs.
If your vehicle is paid for, you are not legally required to carry comprehensive and collision insurance. However, you should keep in mind that if you have damage to your vehicle, you’ll have to pay for the repairs yourself. If you would have financial difficulty paying for the repairs, then full coverage auto insurance is a good idea.
Another thing to remember is that if your car is financed, your lender will require you to carry full coverage insurance and they may also have a deductible requirement. If your lender finds out that you do not carry full coverage, they may add the coverage on, which you will have to pay for.
The deductible you need will depend on the value of your car, your financial situation, and whether or not you are making payments on your car. If you are still in doubt about what auto insurance deductible you need, feel free to give us a call at (859) 781-0434 and we will review all your options. We are happy to help!
