How high should my deductible be? A deductible is the money you have to pay out of pocket for the repair of your vehicle if you have comprehensive and collision coverage. The higher your deductible, the lower your insurance premiums will be.
While it’s tempting to go up to say $1000, you need to know if you’ll have that should you need to use your insurance. Typically a $500 deductible is common, but it can go even lower than that. The lower it goes, the higher your insurance premiums go, though. So you’ll need to determine where your sweet spot is.
This is also why it’s good to know the value of your car and if you need comprehensive and collision coverage. If your deductible is $1000 and your car is only worth $2000, then it’s not going to be worth it to have to pay out half of the car’s value to repair it. If your repairs are that high and your car is worth that little, your insurance company might call it totaled anyway.
What discounts are available to me? Most insurance companies will automatically figure in discounts to your insurance such as safe driver, discounts for vehicle safety features, and multiple driver/car discounts. However, your insurance company might offer you others.
If you’re a student, then they could offer you a discount for being a good student and maintaining a B average. On the opposite side of the spectrum there might be mature driver discounts where if you’re over 55 and successfully complete an accident prevention course through your DMV, you can receive a discount.
You can get discounts for adding a driving habits device to monitor your driving. There are discounts if you’re a professional and belong to an organization like the state bar, or medical board, or even a fraternity/sorority. There are discounts for owning a hybrid vehicle, taking a defensive driving course, or even maintaining low mileage on your car each year.
If you have multiple kinds of insurance policies with one company, such as life insurance or homeowners insurance, then you can also qualify for a discount.
Does my policy include uninsured or underinsured motorists? Not all states require that you carry such coverages. If your state does require it, then your agent should know this and include it. If you are in a state that does not require it, though, you can still get it. It’s definitely a coverage you’ll probably want. If you’re in the accident and the other person doesn’t have enough coverage to cover it, or is uninsured, then you will want to be covered.
Will my insurer give me original parts for repairs? Should you get into an accident, you want to make sure that your insurance will pay for original parts on your vehicle in order to repair it, otherwise it will decrease the value of your car.
Do I have rental reimbursement? If your car needs to be repaired and it’s going to take days, then you will want to have a rental car. This is a separate coverage you can purchase on your policy. It can be beneficial to have, as repairs can take a long time.