High or Low Deductible Car Insurance: What Texans Should Know
Choosing the right auto insurance policy comes with many different decisions. At the end of the day, drivers in Texas are looking to stay legal, protect themselves, and do so for as cheap as possible. We respect that and help drivers by providing a variety of options, including high-deductible car insurance.
But before rushing in and picking the highest deductible possible to try and save a few bucks, it’s important to put everything into perspective. Otherwise, you might actually end up spending more for your coverage defeating the entire point.
There are different types of car insurance available, including comprehensive and collision coverages which focus on protecting your vehicle rather than other drivers like a liability. These coverages are great but come with deductibles that must be agreed upon when enrolling.
Cheap full coverage auto insurance combines these coverages with liability coverage and maintaining a higher deductible is key for keeping costs low, but whether or not this is the best move for you hinges on multiple factors. Take a closer look at high deductible vs. low deductible car insurance policies and determine which option works best for your needs.
How High of a Deductible for Car Insurance for Texas Drivers?
You’re going to want to have a deductible that you can afford while also helping lower your monthly costs. High-deductible car insurance can be a valuable way to save money on premiums for policies such as comprehensive coverage.
Car insurance’s higher deductible lower premium coverage works because the higher your premium is, the more you’ll be responsible for paying out of your own pockets after an accident. Therefore, while you pay less each month, you pay more upfront.
It also means you’re going to need to be able to afford to pay potentially thousands of dollars at once to restore your vehicle. Typically, auto insurance deductibles range between $500 and $2,000 in increments of $500.
So, when choosing your deductible, it’s important to audit yourself and take into consideration how much money you can afford to pay after an accident. You won’t receive compensation to restore your vehicle until you pay your deductible following an accident. Therefore, if you are unable to do so, you may be without a vehicle or drive a damaged vehicle until then.
This is important to consider because in a minor accident, while the value of your vehicle will also take an obvious hit, the issue is primarily aesthetic. If you take immense pride in your vehicle, this could be a bigger issue than for others, but major accidents are the real issue.
When your vehicle needs repairs and isn’t totaled, you’re going to have to pay for the parts and labor to get this done. Therefore, if you choose a high-deductible car insurance plan and can’t pay for the deductible, you won’t be able to restore your vehicle.
This can present major problems for drivers, especially in Texas. Cities have varying levels of alternative public transportation, but even then, major metros such as Houston can still lack in large portions of their infrastructure. Rural Texans no doubt have it worse and depend on their vehicles for multiple reasons.
Not having a vehicle can be detrimental to your source of income, everyday tasks such as errands, present a barrier to accessing healthcare, and much more. Always take into consideration the full scope of what it means to have a higher deductible to ensure you are able to cover the costs in the event of an accident.
Should I Get a Higher Deductible Car Insurance in Texas?
A good way to test whether or not high deductible car insurance is worth it for you is to calculate the costs under different scenarios. You’ll want to consider the various costs of repairing your vehicle, rising costs affecting parts and labor, and your ability to pay a larger sum of money upfront.
Looking at things from a “car insurance high deductible vs. low deductible” point of view is only helpful in the short run. But to make an informed decision, you’re going to want to take into consideration both the present and future costs and how they affect your finances.
Why Is My Car Insurance Deductible So High in Texas?
If you have a higher deductible car insurance policy, it’s because you chose to. When you are signing up for your auto insurance coverage, if a deductible is necessary, both you and your insurance provider must agree upon the amount before signing up.
This is necessary to set the proper terms for your coverage because your insurance policy won’t reimburse you for any losses until you pay your deductible. It’s the financial responsibility of the policyholder and helps shape the coverage, premiums, and roles of each party.
Some drivers are surprised by their deductible in the aftermath of an automobile accident. When choosing between low deductible vs. high deductible car insurance, it can be enticing to pick the higher option for cheaper monthly premiums, but if you are not prepared to cover these costs, it can be a jarring experience.
If you’re working with the right insurance agents, they will help you not only look for the lowest price but the best form of coverage. This means taking into a variety of factors and helping you stay protected for less, even when considering the amount you’ll need to pay after an accident.
Lower monthly premiums are great but do you no good if you can’t afford to restore your vehicle after an accident. Here at Freedom Insurance Group, we help you compare multiple options for coverage based on your needs today and tomorrow.
Is a High Deductible Good or Bad Car Insurance in TX?
A high deductible on your car insurance policy is neither good nor bad. It will depend on a variety of factors to determine whether or not it’s right for you, but both have their pros and cons.
Ultimately, determining whether or not the benefits of high-deductible car insurance are good for you will mean assessing your personal needs.
Remember, the higher your auto insurance deductible, the less you pay in monthly premiums. But you’re also going to have to cover more in the event of an accident before receiving compensation from your auto insurance carrier.
Therefore, you’re going to want to carefully consider many different personal variables when deciding between higher or lower deductible car insurance policies, including:
- Which best fits your financial situation? Saving money each month and being prepared to have savings or other means to cover a larger payout, or paying more monthly and saving should an accident occur?
- Do you get into accidents often? If you are accident-prone, having a lower deductible may be a better option. This way you can avoid paying larger sums more frequently.
- The same is true for homes with riskier drivers. A common example is when households have teen drivers on their policies. Younger drivers are statistically more likely to get into an accident and a high-deductible can mean paying larger sums more frequently.
- Your vehicle’s value will also need to be a consideration. If you’re driving around in a vehicle that isn’t worth much, there is no reason to have high-deductible auto insurance. But if your vehicle is newer or has retained more value, a higher deductible may be the better option.
The advantage of a high car insurance deductible is to save money on monthly premiums, but ultimately, if you don’t have the right form of coverage, you can lose money in the long run. Your auto insurance policy is there to help you protect your finances, and your vehicle, and rebuild after an accident.
Thankfully, there is more than one way to save on car insurance in Texas, and doing things the right way will take into account much more than just your deductible. The right coverage will help you stay protected and save money in the process. Our experts are here to help make this happen.
How To Save With High Deductible Car Insurance in Texas
Saving on your auto insurance means looking at all angles. How much you pay on monthly premiums is directly affected by the amount of your deductible, but there are several other factors including your age, gender, driving record, the value of your vehicle, driving trends in Texas, and much more.
These risk factors are all looked at by insurance carriers, but each brand does things a little differently. This means that every brand might look at the same risks but they are going to judge them differently.
So, you’ll shop for policies and even before choosing a deductible, the same coverage will cost two different prices based only on the brands you choose to compare. It can be a frustrating journey for drivers looking to save and stay protected, but that’s exactly how we’ve been helping Texan drivers since 2005.
We don’t work for a single brand, we have partnerships with more than 25 top-rated auto insurance carriers so that our clients have a variety of options available and can find the best one for their needs and budget.
If you’re looking to save time, because shopping among so many brands can be difficult without the right tools, and money, we’re here to help you find the car insurance that fits your needs.
Contact our agents today to find the best coverage available to you, including high-deductible car insurance policies, or simply fill out a form for an auto insurance quote online.