Body Shop Deductibles and Premiums

Sometimes the lower price seems great, right? Not in every case, though – especially when it comes to insurance. Have you ever noticed that when you are shopping for insurance quotes, the plans with lower monthly rates have a higher deductible? The insurance companies actually use mathematical algorithms to determine profitability when it comes to how much they should charge for insurance to policy holders. This ensures that they don’t lose money in the long haul. If you were ever at a body shop after an accident, you may have wondered why your insurance deductible was so high.

Higher insurance deductibles are often featured in policies with lower premiums. This allows insurance providers to remain profitable and stay in business, but also presents consumers with a choice. Paying higher premiums on a regular basis will likely mean less of a financial burden if an accident occurs, whereas a higher deductible will mean less money regularly spent to maintain a policy. As your choice body shop in Scottsdale, we would like you to be aware of this.

This means that if someone were to avoid car accidents and collisions completely, the high-deductible policy would be ideal, because premiums are lower. Since accidents are by definition not entirely under the driver’s control, however, assuming that they will not occur may be unwise. Take it from us – a higher deductible may not always be the right answer.

Tina Small has been part of the Airpark Collision Center team since 2006. Working directly with customers, her goal is to share frequent customer questions, and proper methods of collision repair.