Low and High Deductibles: The advantages of both

Today I had a call asking what would be the best option, a high or low deductible for auto insurance.  This seems to be a question that is on a lot of people’s minds when obtaining auto insurance.  The purpose of a deductible is to have a set amount of money that an individual will be responsible to pay out in the event an accident occurs prior to an insurance carrier paying any money on a claim. The best answer is actually up to the client, themselves, as only they can make the best decision for them.  Where as an insurance agent can give them the best advice as far as saving money; it is entirely up to if you want to save money over a period of time, or if you want to save money at one particular time.  Below are the advantages and disadvantages of a high and low deductible.

High Deductible: A high deductible will provide an insured with a lower premium and a lower monthly payment, however, in an event of an accident; the insured will have to come up with more out of pocket.  

Low Deductible: A low deductible will provide an insured with a higher premium and higher monthly payments, however, in an even of an accident; the insured will have to come up with less money out of pocket.

So as a driver if you have many accidents on your record, it may be in the better interest to have a lower deductible and pay more throughout the year.  However, if you are a driver with very little accidents on your record you may want to take the higher deductible and save money each month or yearly.