UPDATE: Goodwill Car Donations is currently accepting vehicle donations. Call 866-233-8586 to schedule an unattended FREE pickup. To learn what actions we are taking to ensure you are protected when you donate a vehicle to Goodwill Car Donations, please click here.

Should You Go with High Deductibles or Lower Premiums?

Black Pen Placed on White Paper | Goodwill Car Donations Photo by Pixabay under Pexels License

How to Choose an Auto Insurance Policy That’s Best for You

As a car owner, one of the biggest things you need to focus on is the auto insurance policy you’ll purchase. For those with little experience, choosing the best car insurance policy may seem straightforward. However, it involves several steps and considerations — including the deductible amounts and premiums you have to pay.

Auto Insurance Deductible Explained

A car insurance deductible is an amount you pay out-of-pocket before the insurance kicks in and covers the remaining cost of the damage. Not every insurance coverage requires a deductible amount. For coverages that do, specifically the comprehensive and collision insurance coverage, policyholders typically choose between a deductible amount of $500 or $1,000, sometimes more.

Here’s how it works: For instance, you were driving your car to work when you suddenly saw a deer coming toward you from the side of your car. The deer hit your car, and while it walked away without a scratch, you were left with a seriously damaged vehicle.

If the repairs cost $2,000 and your deductible amount is $500, your insurance policy will cover the remaining $1,500, while you will be responsible for the $500.

How Are Deductibles Related to the Premiums You Pay?

Deductibles are inversely proportional to the premiums you pay. If you commit to a larger deductible, you’ll have to pay less on your insurance coverage premium because you’re assuming a large percentage of the repair costs.

On the other hand, if you choose a lower deductible, you’ll have to pay a higher premium for your auto insurance coverage. If you make that choice, your insurer will have to pay for higher repair costs. Insurance companies usually mitigate the risks by asking their customers to pay more for their insurance policies so they’ll avoid losses.


Should You Go with High Deductibles or Lower Premiums?

The answer is: It depends. Although there’s a lot to consider when choosing deductibles in an auto insurance policy, the decision will ultimately come down to your preference as the insured.

As mentioned earlier, lower deductibles translate to higher premiums, while high deductibles mean lower premiums. If you’re committed to being a defensive driver and have no history of reckless driving and accidents, then a higher car insurance deductible might be what you need. However, a lower deductible might make more sense if you’ve had a few accidents before and you usually drive on busy roads.

While it can be tempting to commit to higher deductibles to pay a lower premium, you might end up in a bind if an accident occurs, and you’ll be stuck with a deductible you can’t even afford in the first place.

Whether or not you choose high-deductible or low-deductible insurance coverage will depend entirely on how much you can afford. Whatever you decide on, be sure you are comfortable with that amount and can pay it out-of-pocket if you need to file a claim.

You Can Use Your Unwanted Car to Help the Needy in Your Community

If you have an extra vehicle you want to dispose of, consider donating it to us at Goodwill Car Donations. We’ll use it to help the disadvantaged individuals in your community.

Our team will sell your donated car through an auction and use the proceeds to support the life-enhancement and community-building programs of the Goodwill organizations serving your area. These IRS-certified 501(c)(3) nonprofits cater to disadvantaged Americans — those who are burdened with disabilities, lack of education, job experience, or essential skills, and other limiting personal issues, such as having prison records or being welfare-dependent.

Your local Goodwill nonprofits use the funding we give them to provide their beneficiaries with job and skills training, employment opportunities, scholarships, livelihood assistance, disability benefits, family support, educational services, financial assistance, and many other essential support services.

You’ll also benefit from your generous donation since this will enable you to receive substantial rewards. These include your entitlement to claim the maximum tax deduction in the next tax season. You’ll also get a professional pickup and towing service from us at no cost to you and wherever you are located in the country.

Best of all, you’ll find great satisfaction in doing something that will benefit your entire community as once disadvantaged members secure decent jobs and sustainable livelihoods that will eventually enable them to attain financial stability and live healthy, productive, and fulfilling lives.

We accept nearly all vehicle types. We even accept damaged or non-working vehicles as donations.

For more information about our vehicle donation program, including our quick and easy donation process, feel free to check out our FAQs page. If you have questions or concerns, don’t hesitate to call us through our 24/7 toll-free hotline at 866-233-8586. You can also leave us your message here.

Person Giving Alms to the Poor | Goodwill Car Donations Photo by Timur Weber under Pexels License

Give Hope to Those Who Are About to Lose It Today!

Donating your vehicle to us will turn your old beater into a beacon of hope for the struggling underprivileged people in your community. It will also contribute to the growth and progress of your community. You surely have nothing to lose and all to gain with your car donation. Call Goodwill Car Donations at 866-233-8586 or fill out our secure online donation form now!