When shopping for car insurance, the deductible is often the first thing you think about. You know that higher deductibles mean lower monthly payments, but also higher out-of-pocket expenses in case of an accident.If you’re shopping for an extended auto warranty, like many others who are in this situation, you’ll probably look at monthly premiums first and then deductibles. In other words, you’ll see how much each option costs for the first year and then decide if the deductible is worth it. After all, most people don’t even think about how much their car deductible will be until they try to file their claim after an accident occurs. In this article, we'll discuss the benefits and drawbacks of each type of deductible so that you can make an informed decision about which one is right for you.

What is an Auto Deductible?

An auto deductible is the amount you pay before your insurance company begins paying out. In other words, with an auto deductible, you’re on the hook for any repair costs above the amount of your deductible. With that said, many people have the misconception that there is a cap to how much they’ll be expected to pay for repairs. There is no cap. You could repair your car and owe thousands of dollars if it’s a major accident.

What Are the Pros of a Higher Deductible?

The primary benefit of a higher deductible is that you’ll have less to pay in case of an accident. However, keep in mind that you’ll also be on the hook for more out-of-pocket expenses if you decide to go ahead and pay for repairs out of pocket.You may also be able to save money by choosing a higher deductible. Many people don’t think about how much their monthly premiums will go up if they choose a higher deductible, but that’s something you should keep in mind if you’re trying to keep your costs down.

What Are the Cons of a Higher Deductible?

The first and most obvious disadvantage of a higher deductible is that you’ll have more out-of-pocket expenses in case of an accident. This could be something that’s out of your control, but it’s important to keep in mind as you’re making your decision.You may also have trouble getting approved for certain repairs if you have more serious damage to your vehicle. You’ll also have to be more diligent about maintenance and upkeep if you’re on a budget.

What Are the Pros of a Lower Deductible?

The biggest benefit of a lower deductible is that you’ll have more money in your pocket in case of an accident. This means that you won’t have to come up with the entire amount of your deductible. This is true even if you choose to repair your vehicle and pay the rest out of pocket.You may also have more options for repairs. If you decide to repair your vehicle yourself, you’ll have to find a mechanic who will work for a lower rate. If you’re on a budget, this could be a big challenge.

What Are the Cons of a Lower Deductible?

The biggest disadvantage of a lower deductible is that you’ll have a higher monthly bill. This is especially true if you choose to repair your vehicle yourself and don’t have the option of taking your car to a mechanic. You’ll also have to be more diligent about maintenance and upkeep if you’re on a budget.If you’re shopping for car insurance, it’s important to keep in mind that the auto deductible is something that you can negotiate with your insurance company. If you have a lot of accidents and you’re diligent about regular maintenance, you may be able to negotiate a lower deductible.

Is an Extended Car Warranty Worth the Cost?

This is a tricky question to answer because it depends on several factors. For example, if you choose to repair your vehicle and don’t have to pay a deductible, it may be worth the cost of an extended car warranty. If you’re going to repair your vehicle and don’t have to pay a deductible, you’ll have to weigh the cost of an extended warranty against the cost of repairs.

Conclusion

Now that you know what a car deductible is and the pros and cons of each type, it’s time to make an informed decision. When shopping for car insurance, you’ll want to keep in mind that the deductible is something that you can negotiate with your insurance company.If you have a lot of accidents and aren’t able to negotiate a lower deductible, you may want to consider an extended car warranty.