Shopping for home and auto insurance in Edmonton can be a headache, especially when it comes to choosing a deductible. You’re probably familiar with the basics: a deductible is the part of an insurance claim you pay on your own, and the higher the deductible, the lower your insurance rate. That seems straightforward, but let’s look at some of the finer details.
What factors are considered for insurance deductibles?
Factors such as the neighbourhood you live in can influence your premiums and your deductible. Some parts of the province are more prone to certain losses than others. Deductibles for things like hail, windstorm or sewer back up can vary depending on the frequency of the types of claims for that area.
What are disappearing deductibles?
A disappearing deductible is one that decreases the longer you go without having a claim. Once common in home insurance policies, these kinds of deductibles have been making a comeback in the auto insurance industry. While such offers may sound like a great deal, keep in mind that they’re provided to policy holders at a premium cost and that they are directly influenced by your claim history.
Advice for choosing a deductible
When selecting a deductible, you should evaluate what you have in the way of savings. If you can comfortably manage to have a few thousand dollars tucked away, then it might make sense to opt for a higher deductible and pay a lower rate for your insurance policy.
On the other hand, if you only have a few hundred dollars in your savings account, it’s probably better to opt for a lower deductible if possible and pay a bit more for your premiums.
Our Insurance Brokers Make Understanding Deductibles Easy!
Remember that the brokers at MBS Insurance Brokers work for you and are committed to finding you the best plan at the most affordable rate. Additionally, we have access to a wide variety of insurance providers, which can give you a competitive advantage in terms of securing a plan that meets all your insurance needs. Contact us today at our Edmonton office to make an appointment or get a free quote!