Can my home insurance deductible affect my rates?

Home insurance deductible

When you’re setting up your Atlanta home insurance, there are a lot of decisions to make. There are a lot of questions to answer, a lot of details to go over, a lot of big, fancy insurance words you’re dealing with. It’s a bit overwhelming and a bit draining, perhaps. One of the many words that might have come up is deductible. What is that, and what does it do? How does you deductible affect your home insurance premium? We’ll explain what that all means.

What is your home insurance deductible?

Okay, so there are a lot of insurance words that come up when you’re handling Atlanta home insurance. And yes, those terms can be a lot. One word that may have arisen during your insurance quest is deductible. So – what exactly does that mean and why does it matter? Here we go.

The deductible is the amount you agree to pay if you have a claim. Basically you cough up that money towards the claim and then the insurance company coughs up their part of the claim. (Of course, your policy comes with a limit, so you have to be aware of that.) Your deductible is definitely something you need to consider when you set your home insurance. It can make a difference – and we’ll explain why in just a moment.

But first – an example.

Let’s say that there’s a covered loss to your home – so your insurance is going to help you out. Your deductible is $1,000. The claim ends up coming to a total of $12,230. (Just go with us, we know that it’s a random number.) Anyways, you would end up paying that $1,000. The insurance company would end up paying $11,230. So – if it’s any consolation, the insurance company has a lot more money to pay. Yes, having to pay your deductible is unfortunate, but take comfort in that, maybe?

(Side note: since you may end up having to pay your deductible if you have a claim, consider saving some money and keeping it safe as a sort of “in case of emergency” fund. Whether it’s a home insurance claim or a car insurance claim, having a bit of money earmarked as a deductible for a rainy day can come in handy. Just a tip so that you’re prepared for claims if one ever does befall you.)

So, that’s the deal with what a deductible is and how it works. It’s an insurance reality that you’ve got to be prepared for.

How does your deductible affect your Atlanta home insurance rates?

There’s more that you need to know about your home insurance deductible.

Your Atlanta home insurance deductible can have an effect on your premium, or the amount you pay for your home insurance. How does that work, you may ask? Well. The thing is that if you choose a higher deductible, you could see a lower home insurance rate. (If you have a higher deductible, you could be less likely to file a small claim.) So, by setting a deductible that’s higher, you could lower your home insurance rates. However, you probably should give it some serious thought. You don’t want to raise your deductible so much that it would be a big burden to pay if you have a claim.

It’s all about balance. You have to decide how much you could comfortably afford to pay if you have a claim. Would you rather have a higher premium, but a lower deductible to pay in the event of a claim? Or would you rather have a higher deductible to pay if you have a claim but a lower premium? That is a question you have ot ask yourself. And then answer according to your situation.

So, that’s the scoop on your deductible and how it could affect your home insurance rates. The deductible is the amount you agree to pay if you have a claim – the insurance company has the rest up to the policy’s limit. If you have a higher deductible, you could see a lower premium. That’s usually how it works.

Get quotes for Atlanta home insurance.

Now – another way you can get lower Atlanta home insurance rates is by getting multiple quotes to look at options. That’s where our team can help. We would be happy to help you get some Atlanta home insurance quotes. Get in touch with our team by filling out our online form, giving us a call, or messaging us on LiveChat. We love helping people save money on their insurance.