When the hurdle of finding automobile insurance is cleared. The insured person that is liable for the premium payment should read and absorb the detailed policy before any money changes hands. The contents of a policy may need interpretation via the insurance company.

The most misleading part of the policy, is the money that will have to be provided by the insured individual in addition to the premium for necessary repairs. The amount of a deductible will involve a self-evaluation, and personal circumstances. If the applicant personally thinks an accident is likely then the deductible should be a low amount, and the monthly payment higher.

In most cases, if the damage to a vehicle is more than a set deductible, the best decision is to not file a claim with an established insurance company. Knowing what excess or deductible that will be paid by you, in addition to the insurance compensation is essential.

When confronted with a minor collision, take into consideration the estimate of damage before immediately notifying the insurance company. If you broke a tail light, scratched the bumper, and have a dent in the trunk, chances are if your deductible is high, you will be better off not telling your insurance company. Especially if you backed into something and caused the damage. Reporting this will raise your risk standings. Ask yourself which alternative will be financially feasible. In most states, you will need to fix the tail light only for inspections, but the dent and scratches are legal.

By properly assessing the situation, and deciding not to report a crash, you can cash in on another benefit. This option is described by looking under the no claim bonus section of the policy. When logically not filing an accident claim, you can get compensated otherwise.

In most cases, there are a few choices of excess or deductible that you are capable of affording. Some choices are offered as a resolution to paying a high price per month. Other choices are most likely included in every insurance policy available through the company.

Chances are likely of an excess or deductible having a significant rise, when a rookie driver is applying for insurance. Whether an addition to an existing policy, or a new individual policy, either way the risk factor is increased and the deductible will be raised.

In summary, deductibles and excesses are explained in the policy. The option to evaluate, and change this amount to be more than the base amount, is up to you.

Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal