When purchasing MA auto insurance, you have several options. One of those options is the deductible amount. Here are a few things that might help with understanding MA auto insurance deductibles and how they work.
What Are Auto Insurance Deductibles
When you have a collision claim against your MA auto insurance policy, a deductible typically applies. The only time you may not need to pay a deductible is when another insured driver is found responsible for the accident. If you, and uninsured driver, or an unknown party is at fault, then the deductible will apply.
A deductible is the amount that you must pay out-of-pocket for an insurance claim before your insurance coverage kicks in. For example, if damages to your vehicle equal $2,000 and you have a $500 deductible, you will pay $500 and insurance will cover the remaining $1,500. If your damages equal only $400 and you have a $500 deductible, then there is no need to file a claim since insurance would not cover any of the damages anyway.
Deductibles vs. Insurance Rates
Typically, the higher your insurance deductible, the lower your insurance rate. If you have a MA auto loan, your lender may limit your deductible to a certain maximum (such as $500). Otherwise, the decision is completely yours. Before immediately going for the higher deductible in order to save money on insurance, consider this. If there is damage to your vehicle, will that deductible cause a hardship? For example, if you live on a tight budget, a $1,000 deductible may be extremely difficult for you to cover. The additional monthly cost of insurance to drop that deductible to $500 or even lower may be minimal. Paying a slightly higher premium may be worthwhile and the smarter decision for you.
Advice on MA Auto Insurance Deductibles
MA auto insurance deductibles and relative insurance rates will vary based on your insurance provider. Gorman Insurance works with many insurance providers and can help you find the best combination to fit your needs. There are also other options to consider on your policy. Contact us today for a free consultation and quote. You may also obtain an instant MA Auto Insurance quote right on our website.
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