Auto Insurance Deductibles
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auto insurance deductibles

Auto insurance deductibles are a necessary evil, but you can work them to your advantage with a little clever maneuvering.


If you don't know what a deductible is or how it works, let me explain it a little for you.


A car insurance deductible is the amount of the damages you will pay in the event of an accident or other covered incident before your insurance kicks in.

For example: If your deductible is $500 and the total cost of your damages is $4000, you will pay $500 and the insurance company will pay $3500.


How do deductibles affect the cost of your auto insurance?


Good question! The higher your car insurance deductible, the lower your premium payment. You can actually save up to about 40% by raising your insurance deductible.


Here's a handy tip: Instead of paying the insurance agency higher premiums to keep your deductibles low, choose higher car insurance deductibles and set the amount of the difference in your premium payment aside in a separate savings account.


This takes discipline and self control, but in the end, if you do this, you will save yourself a lot of money. Just think, if you save $300+ a year by keeping high deductibles over the course of your driving career (mine has been 27 years and counting) you could save yourself $10,000-$20,000.


This little trick is certainly something worth thinking about. I'm always on the lookout for ways to save money, especially on my auto insurance.


You may not be able to do anything about your age, or your driving history, but you CAN choose to carry a higher auto insurance deductible to help keep your insurance rates down.


There are also several other ways you can save money on your car insurance premiums.  Check out the other types of insurance discounts you can get. 


Safe Driving!


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