by 
The Curious Bag
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In almost every state, anybody who owns a car must purchase some type of automobile insurance. One of the most important factors in picking a car insurance plan is the deductible. Picking a deductible is just one facet of the deductible, the other is paying for it.
Identification
A car insurance deductible refers to the amount of money a person pays toward any claims before the insurance picks up the rest of the bill, according to carinsurancerates.com.
Types
The consumer chooses how much of a deductible she would like to pay, according to carinsurancerates.com. In addition, there are separate deductibles for comprehensive insurance, covering anything but collisions, and collision coverage for accidents.
Effects
The amount of deductible a person chooses greatly affects the cost of insurance, according to carInsurance.com. Higher deductibles reduce the monthly cost of car insurance, but also means the motorist pays more for damages.
Considerations
No perfect car insurance deductible exists, claims autoinsurancequotes.com. Each persons financial situation is unique and factors such as varying income levels change how much of a deductible a person can afford.
Tips
Carinsurancerates.com recommends that people calculate their yearly deductible and put enough funds to cover it, or at least some money toward it every week in a separate, interest-earning bank account.
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