Reasons to Increase Your Auto ... - Car Insurance Comparison

There is basically only one main reason to raise your car insurance deductible, and that is to lower your insurance premium. The car insurance deductible is the amount that you must pay towards any claim before the car insurance company pays its portion.

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So, the higher the deductible, the more you must pay towards a claim. And the more that you have to pay towards a claim, the lower the risk you are to your insurance company. Therefore, your premium cost will decrease.

Why Drivers Choose to Raise Their Deductible

As with most things that must be paid each and every month, you will most likely go to extremes to try to find the least expensive car insurance coverage.

One of the first things that can be done to lower the car insurance premium is to change the coverage limits to lower amounts, and change their deductibles to higher amounts.

By doing one or both of these actions, you will most likely be able to save money and lower your monthly premium payment. However, it is important to consider what effect on your coverage making these changes will have.

While deductibles have a major effect on what the actual cost of the car insurance policy will be, it is also important to realize what the changes might do. You have to be careful to not price yourself out of your own car insurance policy by raising your deductible.

For example, if you change your deductible to an extremely high amount, such as $1,000, you will most likely save a certain amount of money on your entire auto insurance policy. In fact, the savings could be as much as $50 per month.

However, the $50 per month has to be weighed against the potential cost if you do need to file a claim. Having a $1,000 deductible does not make any sense if you cannot afford the $1,000 if you need to file a claim. If an accident happens, and you do not have the $1,000 to pay the deductible, the $50 per month savings is not going to be worth the potential of not having a car.

Obviously, a deductible amount can be set very low, and can ultimately lead to very high car insurance premium costs. To make sure you have set your deductible at a reasonable amount, take a look at what you could afford if you had an accident. Set the deductible at that amount, and most likely you will find that your premium is affordable as well.

Lower Your Premium Without Increasing Your Deductible

You can also look at other ways of lowering your premium, and these include changing some of your coverage amounts. For example, if you are currently paying for roadside assistance with a separate company like AAA, you might save money monthly by switching to your car insurance company?s roadside assistance program.

You can also set higher collision and comprehensive coverage amounts if you feel that your car is not worth having insurance because you can pay for the damages yourself.

Keep Yourself and Your Loved Ones Covered

There are no state minimums or maximums when it comes to a deductible; however, it is important to not just base your car insurance coverage on what is the least expensive policy.

It is best to get insurance coverage that you can afford, both monthly, and in the case of an accident, so you are covered no matter what. Make sure you compare policies that have the same coverage amounts and same deductible amounts.

Often, online car insurance companies will produce a car insurance quote that is much less expensive than the one you currently have. The reasons for this are quite simple ? the company has changed its deductibles, coverages, and liability limit amounts to lower your premium.

Although this may result in a lower monthly payment, in truth you are not completely covered in the case of an accident. It is vital that you have a policy that protects you, your passengers, and your vehicle.

Other Reasons to Raise Your Deductible

If you have a clean driving record void of any at-fault accidents or moving violations including speeding tickets, you are a low-risk driver who might actually benefit from raising your deductible. In fact, some drivers save as much as 15%.

Another benefit that may result from raising your deductible is the higher amount may prevent you from filing a small claim that ultimately would just end up raising your rate again.

In addition, the savings from raising your deductible can allow you to increase your liability coverage amounts to further protect yourself and your family.

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Source: http://www.carinsurancecomparison.com/reasons-to-increase-your-auto-insurance-deductible/

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