{"id":4465,"date":"2017-06-14T16:53:40","date_gmt":"2017-06-14T22:53:40","guid":{"rendered":"http:\/\/www.noyeshallallen.com\/?p=4465"},"modified":"2020-03-04T15:39:48","modified_gmt":"2020-03-04T21:39:48","slug":"500-or-1000-what-is-the-best-car-insurance-deductible","status":"publish","type":"post","link":"https:\/\/www.noyeshallallen.com\/blog\/500-or-1000-what-is-the-best-car-insurance-deductible\/","title":{"rendered":"$500 or $1000 – What is the Best Car Insurance Deductible?"},"content":{"rendered":"

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It’s easy to feel overwhelmed by the options when buying car insurance. Many of our Maine insurance agency’s clients ask “which deductible should I choose?”<\/p>\n

The most common collision deductibles in Maine are $500 and $1,000. The higher your deductible, the lower your cost. But, you have to pay more out of pocket in case of an accident. Most insurance companies’ rates are about 15% less for a $1000 deductible than $500.<\/p>\n

Which is a better value? <\/strong>Here’s a 4 question test to help you decide.<\/p>\n

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Before You Buy Higher Auto Insurance Deductibles…<\/h2>\n

Ask yourself these questions:<\/p>\n

Can I afford to pay the higher deductible?<\/strong> Would you have a hard time scraping together $1,000 to repair your car? You might not want to take the chance of a higher deductible. This is even more important if you lease your vehicle. You must repair any damage on a leased vehicle or pay the difference when you turn your vehicle in.<\/p>\n

What is the payback?<\/strong> The more premium you pay, the larger the savings for higher deductibles. Fifteen percent savings on an $800 collision premium is $120 per year. The same discount on a $300 collision premium is only $45. It would take 50 months to “earn back” the $500 deductible difference in the first example. In the second, it would take more than 11 years!<\/p>\n

How often do I have accidents? <\/strong>If you average an accident every 10 years, the first scenario above might pay off for you. If you average one every 3 years, neither will.<\/p>\n

How risk-averse am I? <\/strong>Do you hate taking chances? The peace of mind of a lower deductible may be worth the extra cost to you.<\/p>\n

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\nRelated post:  When Should I Drop Comprehensive & Collision Coverage?<\/a><\/strong><\/p>\n

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Collision Coverage Is Used More Than You Think<\/h2>\n

Most people think collision coverage is only used when you’re at fault in an accident. That’s only part of the story. Collision coverage is also used when:<\/p>\n