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Low Deductibles: Pros and Cons

Close up to a stethoscope on top of financial statement next to a calculator and a pen to illustrate low deductibles

You’re shopping for new auto insurance. Your goal is to get the best coverage you can afford. Your life doesn’t include too many risky behaviors. The most you’re worried about is a minor accident or injury. You don’t mind paying a bit more every month in case something small goes wrong. Under these circumstances, a plan with a low deductible might be the perfect fit for you.

Despite the great coverage these plans offer, a lot of people avoid low deductibles. You’re required to pay a higher monthly payment, which represents an unrealistic expense for some consumers.

However, low deductibles offer many benefits – and challenges – which you should carefully consider before you apply for insurance. To help you decide what works for you, we’ve created a list of low deductible pros and cons. Read on to learn more.

Pros of Low Deductibles

Low deductibles tend to offer people better coverage than plans with high deductibles.  They’re an ideal option – if you can afford it. For example, many people chose low deductible auto insurance plans. They’d prefer to pay a higher monthly premium than assume a greater risk behind the wheel.

With these plans, drivers enjoy an exceptional amount of coverage. Fender benders and other minor accidents can meet your low deductible, meaning your insurance company will handle the damage and provide you with a rental car.

For more serious collisions, low deductibles are even more important. Car accidents, from the subsequent body work to the medical expenses, eat up your deductible very quickly. Almost everything involved has a big price tag. Without that low deductible, you’d risk paying thousands of dollars to get your car repaired.

Cons of Low Deductibles

Plans with low deductibles are fundamentally more expensive than those with high deductibles. You’ll be required to pay a hefty monthly premium. In exchange for that bigger premium, your insurance company agrees to cover a greater percentage of your financial loss after an accident or injury. However, that monthly premium can be tough to keep paying.

Plans with low deductibles also can seem wasteful if you don’t get sick, injured, or experience an accident. Let’s say, for example you have a health insurance plan with a low deductible.

You purchased it because you thought you might need regular care from a medical professional. Your ailment heals, a fantastic turn of events. Now you don’t need any medical care, but you’re stuck paying a huge monthly premium. This ongoing expense is the major reason many people avoid plans with low deductibles.

At Freeway Insurance, we provide several different kinds of insurance plans with low deductibles. Explore our different types of health insurance and auto insurance, and decide which plans work for your budget. We encourage you to compare quotes for health insurance, and reach out to our customer service team at (888) 443-4662. To get a quote right away, call us directly at (800) 777-5620.

Before you make a final decision about any insurance plan, review our list of pros and cons for plans with low deductibles.

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