Reader’s Question:

I don’t want to pay higher deductibles. But my friend says it’s going to save me more money. If I pay $500 worth of deductible and my insurance company in Pittsburgh pays for the rest, how is it going to save me money if I pay upfront of $1000?

Mark

Pittsburgh PA

Deductible would still be dependent on what your state requires. Your Pittsburgh auto insurance doesn’t really pay for everything in case of an event. You would also need to responsibly pay a part of that in the form of deductibles. What you’re friend was actually trying to say is that if you pay higher deductibles, your premium rates or the cost of your total annual coverage cost also decreases.

If you want to save more money, you need to evaluate several things, to consider whether $1000 deductible is worth than the $500 one. Decide on what you are able to pay and how often you’ll be making claims on auto insurance. Anyhow, you’ll be paying deductibles for every case that your insurance company needs to cover damages. If you want to pay less out from your personal pocket if any possible situation arrives, you would want a better auto insurance policy that has good coverage, which would also depend on what amount you’re paying on deductibles.