Raising Your Deductible - A Smart Way to Obtain Inexpensive Auto Insurance
Putting in a little investment will provide benefits in the long run.
It is not only smart to be able to achieve inexpensive auto insurance now, but enjoy it on a long term basis.
The longer you enjoy it, the better.
One way is by raising your deductible on your existing policy.
What does that actually mean? when you raise your deductible it just means that it is the amount of the insurer's out-of-pocket expenses that the owner of the car will incur and be responsible for it when they get into an accident.
The reason behind this is that you can cut as much as 10% on your premium rate just as long as you are comfortable paying a higher deductible.
It is a risk for the owner but it will save a lot of money on your monthly premium.
If you are very cautious when driving and feel confident about your driving skills, then this is a great way to save money.
Let me provide you a more concrete example, you crash into a pole and according to the estimate it will take $3500 to fix your car.
And then your deductible let's say is $500.
This means that you will have to pay $500 to fix your car and the rest of the $3000 will be provided by your insurance company to fix the rest of the damages on your vehicle.
Essentially, the cost for you is higher when you get into an accident and less for your insurance company.
If your deductible is $1000 then the company will pay $2500, this benefits them so they are passing on the savings to you by lowering your monthly premium.
Now that is a great benefit for your provider but what about you? What's really in it for you and how can you conclude that you now have inexpensive auto insurance? According to statistics, Americans living in the States around the East Coast pay about $400-$1000 per month on auto insurance premiums.
By raising your deductible with your current provider, you could find yourself receiving a 10% discount on your monthly premium.
That could equate to a $100 savings in a month, or $1200 savings in a year.
So, what would you do with all of that extra money in your pocket? There will be a lot of ways to utilize those extra funds.
It is really up to you, The decision is all yours to make.
This is just one of the many smart ways you can have an inexpensive auto insurance policy and be able to save in these trying economic times.