The deductible on your current auto insurance policy may be costing you more than you think. A small adjustment can help you save money over time.
The deductible is the amount of money you agree to pay out of pocket each time you cause an accident and make a claim under collision coverage. The same applies if your coverage against all risks. In other words, the deductible is the predetermined amount the insurance company deducted from the total bill and you pay it.
Once you have found a reputable insurance company and have decided that much coverage you need, the decision deductible is the next step. You need not apply the same deductible for collision coverage to cover all risks. The cost of repairing damage caused by a collision is potentially greater than caused by non-collision events.
Many of us tend to choose the lowest deductible, without realizing that we could save a considerable amount of money every year if we had a higher deductible. We must be careful, if not able to handle a large deductible payment, and an accident occurs, then there is no sense to increase the deductible amount. Another factor to consider is your driving record. If you have a history of accidents, you should plan based on those trends.
As you evaluate options for car insurance, I could build a simple to compare and understand the costs and savings table. This will help you compare the impact in the long run to pay a high deductible. In the first year there may be no benefit to increase the deductible but as time passes and earnings comparisons become more evident.
Get different quotes from insurance firms and competitive agents is one of the best ways to reduce the cost of your auto insurance.