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Fri
16
Nov '12

Auto Insurance Deductible: You Could Save Money

Your vehicle insurance deductibles are one of a few factors that firms use to set the premium on your auto insurance. It can be a good tool to adjust your coverage levels and costs. Possible ways of utilizing this facility will be discussed below.

It is very important to have deductibles you can meet if you get into an accident. But raising your deductible can mean you save on premium payments.  A deductible is the sum of money you pay when you make a claim due to accidents, other damages and stolen vehicles before the insurance firm will pay anything. This is assuming you have sufficient cover for the damages claimed.

As an example, if you have two dollar deductible and your vehicle requires five hundred dollar worth of repairs, then you have to pay the two hundred dollars before the insurer is going to pay the three hundred dollars to cover the damage to the vehicle.

One of the most important things to think about when deciding to raise deductibles is quite simple; are you able to afford to pay for the deductible if you get into an accident or when your vehicle may be stolen? If not, set aside some money in the bank. This will be a great help in times of emergency.

expensive car insuranceWhen you have enough money saved you can raise your deductible which will reduce your monthly premiums. If you are a safe driver, you may save yourself hundreds, if not thousands of dollars. Over time, you will save more in reduced premiums than the amount you may pay in automobile insurance deductibles. The best way of determining the effectiveness of this strategy is to get quotes with different amount of deductible figures.

Do you have a good driving record? Then statistically you have less of chance to have an accident, and raising your deductible is a cost effective solution. Driving records include past accidents and traffic violations that automobile insurance firms use when deciding how much to charge a driver.

You may want to use insurance statistics as well when making the choice about raising your deductible. If you happen to have a good driving record for a while, likelihood of maintaining it is high. So, raising your deductible is an agreeable choice for careful drivers.

Other issues to think about are where you reside and how much you drive. If you live in a location which doesn’t have a lot of traffic or a high rate of car theft, then raising your deductible is a good idea.  Another thing to consider is if you telecommute, use public transport to get to work, or drive minimally, raising your deductibles is a plan that may save you cash.

No matter if the economy is good or bad, saving maximum amount of cash is usually beneficial. There are several other ways of bringing car insurance rates down. You can read more about them here or get several quotes to see your options. Going over coverage requirements and policies in place is a necessary task and should be carried out at least once a year. Making slight adjustments may be all you need to have a great coverage at reasonable prices.

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