Deductibles vs. Premiums: Finding the Right Balance

With just about any insurance policy you could buy in The Woodlands, TX, you’re going to find that the higher you push your deductible, the lower your premium is going to be, and vice versa.

Primarily it comes down to whether you want to pay more month-to-month or if you want to spend more when you have to file a claim. The obvious choice may be to raise your deductibles as you go. After all, the premiums are what you’re going to be paying no matter what. The deductible is what you might pay, someday. But it’s not always so cut and dry.

Generally, the rule of thumb to go by is this: Asking for a higher deductible isn’t a bad idea, but keep it down to a number that you can pay at a moment’s notice should something happen. You don’t want to be left with repairs to be made and no money to pay your deductible, which can mean no way to get to work and make money to pay your deductible.

One option is to put aside some deductible money. If you can guarantee that you always have it on hand, then it doesn’t matter how high your deductible is. But this isn’t ideal. Remember, the idea of lowering your premium is to save money. If you wind up with a deductible that’s twice what you’re saving, then you’re not saving anything. So our advice: Follow the rule of thumb. Keep your premiums low, but keep your deductible low enough to pay it right away should you need to.

If you’re still shopping for insurance, get in touch with Outdoor Insurance Services. Outdoor Insurance Services can help The Woodlands, TX drivers get the coverage they need.

5 Myths about Auto Insurance

Auto insurance myths can cause you to make costly mistakes in purchasing a policy. At Outdoor Insurance Services in The Woodlands, TX, we’ll help you separate auto insurance truth from fiction so you can make wise choices concerning your coverage. Here are five myths to watch out for when buying auto insurance coverage.

Myth: Some vehicle colors are more expensive to insure than others.

Color has no effect on the cost of auto insurance. Other aspects of your vehicle such as make and model, engine type, age, safety features, sticker price and risk of being stolen do affect the cost of your policy.

Myth: Older drivers pay more for auto insurance.

Actually, older drivers often qualify for discounts on their premium due to their driving experience. Seniors who drive less due to retirement and those with good driving records are often eligible for discounts on their policy.

Myth: Credit rating doesn’t affect auto insurance costs.

Actually, many insurers consider your credit rating when quoting you a price for auto insurance. Good credit rating shows you’re responsible in managing your finances. This level of responsibility could extend to your driving, making you less of a risk for accidents.

Myth: If another driver causes an accident while driving your vehicle, his insurance will cover damages.

In most all states, auto insurance follows the vehicle, not the driver. If a friend or relative causes an accident while driving your vehicle, your insurance will be responsible for damages.

Myth: Auto insurance is optional.

Most all states require minimum auto liability coverage to cover the cost of injuries or property damage to others if you cause an accident. Collision and comprehensive coverage to protect your vehicle is optional. If you took out a loan for your vehicle, your lender may require this coverage.

For quality auto insurance at affordable costs, contact us at Outdoor Insurance Services in The Woodlands, TX.