While purchasing car insurance, one of the many things you need to decide upon is the amount of your deductible. But before we move on to the questions of ‘how to’ and ‘why to’, let us first understand what is car insurance deductible. Auto insurance deductible is that amount that you will have to pay for any damages that your car might suffer from. This amount is to be paid before the insurance covers the rest of the money that would be needed to fix the damages. In layman terms, what auto insurance deductible is that if your car suffers a damage that is bound to cost you about Rs. 2000 to repair, you will have to pay Rs. 500 before the insurance company pays the rest of Rs. 1500. That Rs. 500 is your auto insurance deductible.
Of course, one needs to decide upon the deductible amount after thinking it through; before buying a new car in India. A high amount of deductible seems like an attractive proposition for it, which reduces the amount that you are bound to pay on your insurance premium. Notably, if you don’t have the money to cover the auto insurance deductible, you won’t be able to fix the problem with your car. So, before deciding upon the amount for deductible, it is important for you to take into consideration other factors, such as your monthly income, personal savings and household budget, etc.
Now that we have understood what car insurance deductible is, it is important before buying a new car in India to compare the different plans companies have put up on offer. Buying car insurance online could be one of the ways. The advantage of buying car insurance online or just checking out the plans is the fact that you get to view a lot of price quotes. Buying car insurance online also offers you, among other things, an instant online policy.
Considering how important car insurance and consequently the auto insurance deductible is for your car, it is essential for you to research and study what is on offer and then make the right decision.