The Value of Insurance Deductibles
by R&I Consultants
If you have homeowners, personal auto and/or any type of commercial insurance in Atlanta, you have deductibles. These are the amount of money you pay before insurance companies will provide the coverage benefits outlined in your policies. Many times, deductibles are chosen without much thought. If this sounds like you, then read this post!
First, you need to know that deductibles offset how much an insurance policy pays because you are agreeing to assume a certain portion of the risk. So, by assuming a portion of the risk, your policies with high deductibles cost less than those with low deductibles. Why?
Well, for the insurance company, it alleviates the numerous claims filed for every small or incidental loss. This allows the company to utilize their resources for more costly or complex claims.
Here are a few long term advantages to higher deductibles:
• When a loss is under your deductible and is paid out of pocket, you don’t incur a loss incident on your insurance history.
• Loss free history offers the most affordable rates.
• Clean loss history shows an underwriter that you may prevent a lower risk of future loss.
Let one of our agents discuss all of the deductible options and benefits with you in order to determine what kind of savings you might achieve. Just call 404-459-5975 to set-up an appointment. For more information, visit Risk & Insurance Consultants on Facebook.