Last updated Dec 30, 2016 | Posted in auto insurance, blog

If it comes to reducing insurance costs, a lot needs to be considered. Choosing the normal or reduced deduction when buying car insurance can make a big difference. It is that choosing the right option can help you when it comes to saving with the insurance of your car. We tell you what to take into account.

Before Buying Car Insurance, Ask For Deductions

Whoever owns a vehicle and wants to drive safely knows that he has to buy auto insurance, so choosing the right product makes all the difference. One of the possibilities is to choose the reduced deduction, and in doing so you can achieve the reduction of the value in the participation in the event of an accident. However, the value of the premium can be increased.

The deduction is the amount you will pay each time the insurance is triggered and it is the cup that you, as insured, must pay for your vehicle to be repaired. 

Insurance companies usually operate with a deduction pattern. But in case you consider it necessary, the insured can choose to reduce that value, especially when there is high risk.

In the insurance market there are three kinds of deductions available to customers: the normal, which is the first that is offered and that levels the cost of the premium with that of the deduction. The reduced, recommended for those who have a high risk because it causes the value of the premium to increase but what you will have to pay in each accident will be lower. The cost of the premium may increase, but for those who have low risk the higher premium is the best option.

An example of deductions when buying auto insurance

So that you better understand the deduction issue when buying car insurance, we put for example the case of a young and single woman, who lives in a house on the outskirts of the city and uses her vehicle for personal use. A few miles a day, and during the night the vehicle stays in a garage.

It is clear that this owner has a reduced risk and, therefore, will choose the increased deduction, as she will pay a lower premium and a high deduction in the event of an accident.

You should keep in mind that not all companies offer the same values ​​and deductions, so it will be necessary to do an analysis of the proposals before buying auto insurance.

In addition, you should consider the additional services provided by companies, such as backup car in case of accidents, coverage against personal injury, materials etc. So not only the value of the deduction must be taken into account, but also the premium can be decisive when buying auto insurance.