Shopping for car insurance can be tough. There are many options available, but you’ll have to determine which policy is best for your needs. Typically, your car insurance company will have you decide between paying a high premium or a high deductible. Unless you’re intimately familiar with the terminology, understanding the difference between the two might seem confusing. The agents at Cundiff & Company Insurance in Somerset, KY, want to take some of that confusion out of the selection process. Below, their team explains the difference between the two policies.

High-Premium Policies

A car insurance premium is the amount you pay to keep your car covered under an insurance policy. This payment is often broken up into monthly installments but can be paid upfront in one large sum, depending on the policy. An insurance policy with a high premium often has a lower deductible because you’re paying more for the policy itself. You’ll pay less on each claim you file with your insurance company before the insurance kicks in to cover the rest of the damage.

High-Deductible Policies

The deductible is the amount you pay out of pocket every time you file a car insurance claim. Insurance policies with high premiums often have low deductibles, but those with high deductibles typically have lower premium costs. This means you’re likely to pay more out of pocket for repairs, but the monthly premium will be lower.

Which is Right for You?

Choosing between a high-premium or a high-deductible car insurance plan is mostly a matter of personal preference. If you’re looking to save money each month and are comfortable covering a larger portion of your repair costs, a high deductible plan may be your best option. If, however, you’d rather establish a firm monthly budget and use only a small amount to cover repairs, a high-premium plan is preferable.

Whether you’re struggling to choose a car insurance policy or are looking for a friendly local agent to give you an affordable insurance quote, contact the team at Cundiff & Company Insurance today. Learn more about their auto insurance online and call (606) 679-8379 to speak with an insurance agent.