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Your auto insurance deductible is the amount of money you’re obligated to pay before the coverage kicks in. Choosing between a high and low deductible is a tough decision to make, especially if you’re unsure what either choice entails. Here, the insurance agents at Reid Insurance Group of Lovington, NM, share a brief guide to selecting coverage and how to setup a policy that best meets your needs.

High vs. Low Auto Insurance Deductibles

The premium is the amount you must pay each month to secure coverage. When monthly premiums are high, deductibles are low; when monthly premiums are low, deductibles are high. 

You should look at a few factors if you’re considering a higher deductible. If you have a sufficient amount of savings to cover a deductible in the event of an accident, drive less frequently than most people, live in a rural area, avoid driving when traffic is at its worst, then having a higher deductible might make sense.

auto insuranceConversely, people with spotty driving records or those who drive frequently are better served by a high monthly premium and low deductible. This is because your risk is higher than a person with a good driving record and those who encounter fewer risks while driving. You should also consider your income and savings. Could you reasonably cover a high deductible after an accident with your current financial status? If the answer is no, opt for higher monthly payments.

For more information about car insurance deductibles, Reid Insurance Group will address any questions you have. They have over seven decades of experience and will ensure you have the correct coverage to stay protected in the event of an accident. Contact an agent by calling (575) 396-3645. To see the complete listing of auto insurance products available, visit the website

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