When will a deductible apply to my Miami auto insurance policy?

I am often asked about deductibles and when they apply on Miami auto insurance policies.  There are two main portions of your Miami auto insurance policy in which a deductible will apply, comprehensive coverage and collision coverage.  Comprehensive coverage is often known as other than collision coverage.  Comprehensive coverage covers items like fire, theft, and vandalism.  Generally, any damage to your vehicle caused as a result of anything but a collision will fall under comprehensive.  Be sure to choose a deductible that you are comfortable with.  The other portion of your Miami auto insurance that will include a deductible is the collision coverage.  Collision coverage is pretty straight forward.  Collision coverage applies when you collide with another vehicle or object.

Why do I have to carry a deductible on my auto insurance in Florida?

The deductible is the portion of risk that you as a driver take on.  Most of the risk is transferred to the insurance company when you purchase an auto insurance policy, however, you will be responsible for the deductible.  By carrying a deductible you are showing the insurance company that you have some skin in the game.  Let’s say you have a $500 collision deductible.  What this means is that if you are involved in a collision you will be have to pay for the first $500 worth of damage before your Miami auto insurance policy kicks in and picks up the tab.  Auto insurance companies will reward those who carry a higher deductible with a lower Miami auto insurance bill.  By carrying a deductible you are likely to be a more careful driver.  The reasoning behind this is the fact that you as a driver will have to pay money out of pocket along with the insurance company if you are involved in an accident.

What are the appropriate deductibles to carry for auto insurance in Florida?

There is no right answer to this question.  It is important to pick a deductible that fits your budget as well as the level of risk that you are willing to take on.  If you don’t have $500 set aside in the bank for emergencies then don’t choose a $500 deductible.  Just use common sense when choosing a deductible for your auto insurance in Florida.