Looking for ways to save in your out-of-pocket monthly expenses? Adjusting your deductible levels on your car insurance could save you a bit or more each month. Insurance rates are inversely proportional to your deductible level, so if you were to raise your deductible then the cost of your monthly car insurance bill would go down. It is important to remember, however, should you get into an accident, you will have a higher deductible to contend with.
Collision vs Comprehensive Deductible
You can also adjust the deductible differently for your collision and comprehensive with varying results. Collision coverage can cost around 4 or 5 times more than comprehensive insurance coverage. This is because, statistically, drivers are more likely to have a collision than have a theft, fire, vandalism, or other damage occur to their vehicle. That and the cost of repairs or replacement for collisions are higher and can involve a second party that may also need medical or damage restitution.
By adjusting your deductibles so that you have a higher deductible for collision while having a lower deductible for comprehensive coverage, you can optimize your premium savings while.
What Should I Set As My Deductible?
There is more to consider than just saving money every month by adjusting your deductibles on your car insurance coverages. Also, be sure to consider the out of pocket cost you may face in the event of a collision, especially if you are at fault for the accident. You should assess your risks, and we can help you do so, and select a coverage deductible that you are comfortable with month to month and in the long term.
For other ideas on how to save money each month on your car insurance premiums, contact one of our skilled agents to review if you may be eligible for an available discount, such as safe driver or multi-policy holder discount. We can help you compare coverages (and deductibles) and available carriers for the best fit for you practically and economically.