Deductible

Getting insurance should be easy right I mean you just give them your vin number and your driver’s license right? Well what about when they ask you here in Chicago how much would you like your deductibles to be? Well let’s start by saying this a deductible is actually what you are paying out of pocket to cover a expense. Example well let’s say you have full coverage insurance and your deductibles are $500, well then if you were to get in to an accident and your car costs $1300 to fix you would only have to pay $500 and your insurance company would pay for the rest. You can always get cheaper insurance and a higher deductible but then remember if you get a deductible of $1000 then if your car is only $600 to fix then you would be paying out of pocket. A deductible is what you will be paying before your car insurance begins to pay.

 Premium

So now that you know what a deductible is let’s see how they affect your premium. A premium is an amount that is spilt in to payments that are owed to your insurance company. You pay monthly to ensure your coverage. If you do not want to pay monthly payments you may pay your total premium due to that insurance company for a 6 or 12 month policy at one time. If you do this onetime payment you will be avoiding fees and interest charges that will also be accumulated versus if you did payments. A insurance premium is a certain amount that is due within a time frame.

 How do they affected together?

So you can either choose a higher premium a lower deductible or a higher deducible means your monthly payments will be lower. You just have to pick a plan that better suits you. Whether you have gotten in to multiple car crashes in the past 5 years or never had another interaction with another car. Also the more accidents or claims you do not have against you the more you will save with your insurance company those qualify as discounts. Pick and choose accordingly to your driving record

BY Marcella Berent