Should You Opt for A Higher Deductible on Your Motor Insurance Policy?
When it comes to car insurance, there are a wide array of things related to coverage and claims that are often overlooked. This can be avoided by understanding your insurance policy thoroughly before you make the purchase. Doing so will save you from any troubles while making a claim. In motor insurance plans, one such overlooked concept is ‘deductible’. Understanding this term will not only help you while buying a policy but also affect the claim settlement process. What are deductibles? The deductible in motor insurance plans is the amount you have to pay out of your pocket at the time of making a claim, before the insurer pays the rest. The exact deductible amount is agreed upon at the time of policy purchase. You should exercise caution when selecting an amount of voluntary deductibles. This is because while a higher deductible reduces your premium, it increases your out-of-pocket expenses during a loss event. How do they affect a policyholder? Two types