Affordable International Car Insurance by Raising the Deductible
July 7th, 2009We all know what international car insurance offers to drivers. You pay the premiums and the insurer covers your damages if you are involved in a wreck abroad. That is common information, but what many individuals do not realize is the effect their deductible has on the premiums they pay monthly, quarterly or annually.
The main thing to learn about international rental-car coverage is that your deductible represents the portion you pay from your own money, for damages to your rented vehicle. If the deductible is $500 then you will pay up to that much before the insurance company kicks in to handle the remaining balance, provided you purchased the correct coverage for that particular car accident. The higher your deductible, the less likely it is that your insurance provider will end up having to pay out. So, the higher your deductible, the lower your premiums should end up being.
Before you make the choice to select a higher deductible on your overseas car insurance, you will need to be sure you can pay the total with either cash on hand or savings once you are driving in the country you are visiting. A deductible that is too high and you cannot actually afford to pay does you no good even if you have very cheap premium costs. It boils down to checking your own means against your realistic risks. Then you weigh that against what you can afford to pay on your own.
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