Everyone’s looking for ways to save money. Lately, you may have heard about zero deductibles car insurance policies. So, what are these and how do you get them? Read on to find out about no deductible car insurance, how it works and if it’s right for you.
How Does Zero-Deductible Car Insurance Work?
With a regular car insurance policy, some types of coverages come with a deductible. This is the amount of money you pay out of pocket before the insurance company begins to pay. For instance, with collision coverage you may agree to pay a deductible of $500 up to a few thousand dollars. The higher the deductible, the lower your monthly premium will be. It’s a great way to save money each month but can be dangerous if you have an accident and can’t’ afford your deductible.
Other coverage types, such as comprehensive coverage, have their own deductible amounts. So, you may have one level of deductible on collision coverage and another on comprehensive coverage.
Some companies offer zero-deductibles for these types of coverages. And, there is not trick to it. There is no deductible. But you should also understand that the monthly premiums will be higher than if you had a deductible.
Does Zero Deductible Car Insurance Cost More?
As stated, yes. You will pay more for not having an out of pocket deductible expense on your coverage. With a zero deductible, you are not sharing in the risk, so the insurance company is going to charge you more for taking on the full burden themselves.
The good news is that you can change your deductible at any time. If you find you need to save money each month, you can increase your deductible to lower your monthly premium. If you have the deductible amount in savings, or readily available, this could be your best option. But, if you just don’t have a chunk of cash, you may be better to lower your deductible and pay a little more each month.
How Do I Get Zero-Deductible Car Insurance?
Many auto insurance companies offer zero-deductible coverage options. There are some state regulations that require a deductible on certain types of coverages and there are others that allow a deductible to be waived. A good example is a cracked windshield. In this case, the deductible associated with comprehensive coverage, the coverage that would pay for this type of damage, can often be waived.
You can start customizing your deductibles and understanding how they affect your monthly premium payment amounts by shopping around. Use the InsuranceWins form to get quotes from well-known auto insurance companies and find out what their deductible options are. You can then begin to know if zero-deductible car insurance is right for you.