Saving with High Deductibles
Using High Deductibles to Save on Auto Insurance
When it comes to setting up our insurance policy, we've all taken a long hard look at our deductibles. When it comes to saving significant money, a higher deductible is usually the easiest and most direct way to lower your auto insurance rates. A higher deductible means that you are responsible for more money out of your own pocket should you get into an accident. Choosing a higher deductible will save you significant amounts of money in premiums, but you also have to consider what your likelihood of getting in an accident with major repairs is in a given year. If you are a good driver with a good driving record, then it's all about managing your risk.
Look at the cost of various auto insurance deductibles
You'll want to consider how different deductibles will affect your auto insurance premium. Look at other differences in the deductibles as well, because you can often find at least one on the high end and one on the low end. Here's what to look at when considering having a higher deductible:
- Going with a higher deductible of say, $1000, may mean more out-of-pocket costs if you should ever get in an accident, but it may also mean a major cost savings in upfront premiums costs.
- If you compare a higher deductible to a lower one, say around $250, then you may end up with a cost savings of $150-200 a year.
- Consider your driving record, your specific policy, and what you can work out in terms of monthly premiums – they can add up to some major cost savings.
Request a quote for affordable, high-deductible auto insurance today!
Look at the facts about auto accidents to make a decision
Chances are that you are going to end up in a car accident at least once in your life (in fact, not to rain on your parade, but the average American makes 50,000 car trips in his/her lifetime; and, drawing from that fact, the odds of being killed in a car accident are 1 in 140). Remember that fact when you are choosing a deductible.
However, by managing your risks a bit, you may very well end up with a higher deductible plan. In the end, this ultimately means that you are paying a lower premium each month, and that can add up to a cost savings of over $150 every year. That's money in your pocket, and that is extremely valuable if you never have to pay your deductible in a given year – especially if you feel comfortable bearing some of the risk of a car accident.