hoj. Home and Auto Insurance. January 05th , 2018.
Before you decide to buy a car or a home there are some things you need to know before you sign on the dotted line. One of which is how much deductible to have. What is best for you and why you really want to think about it before you obligate yourself to the commitment. Here are a few things to remember when asking how do insurance deductibles work.
Insurance has always been a high risk game, in which all parties are to share in the loss, at least to some extent. There are thousands of calculations made by insurance companies every day to determine just how much risk they are willing to take and how much they think the insured should pay. They have been gathering all this information for hundreds of years.
These matters are figured on all of the policies they have issued, and are the foundation of what keeps insurance companies in business, and there to cover your loss, in the event you should have one. They are not going to be argued with about the premiums, but you can negotiate with them based on the deductible you are willing to pay. But, it is up to you to make sure you can pay it, if the time comes.
Automobile insurance is based on several different facts. How old you are. If you have had any previous accidents. Of course, you have to be a licensed driver and is the vehicle going to be used for personal or business use. Some people are not aware that even the color of a car can influence the premium.
You need to determine some financial matters of your own before deciding how much deductible you can pay. Such as, how much money you make each month. Do you regularly put money into a savings account, and do you already have enough in savings to cover the deductible.
Waiting until you have a car wreck is not the time to be caught without enough money to cover your obligations. If you have a lien on the vehicle the bank, or loan company, they are going to demand that you get the vehicle repaired. You must have enough money to cover the deductible.
Home insurance is another type of coverage that comes with a deductible. If you are a homeowner and own money on it, the Mortgage company will demand that you keep insurance coverage on it for the duration of the loan. This means you have two deductibles to worry about, now.
There is a lot more to life than just working and paying bills and hope that you have enough money to cover everything at the end of the month. Everyone should set up a budget and maintain it by putting everything they can into a savings account for emergencies that can be financially devastating. Open a separate savings account for each of the types of deductibles you are obligated for and make sure you make deposits into them each month to build the balance large enough to cover you in case of a disaster.
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