If you’re looking to lower your auto insurance payments each month there is one thing that is easy to do and often overlooked: raise your deductible amount.

What is the deductible and how does it really affect you anyway? Let’s say you get into an accident, you make a claim and for an example you accidentally scrap the side of your trunk. Now obviously that scrape is not that big a deal, it’s probably just costs $200-$300 to get this scrape removed or repainted. But of you have a high deductible, you make a claim so the claim is on your insurance. So you’re at fault and your insurance is going to pay the claim. That’s where your deductible comes in.

Say, if you have a $1000 deductible you have to pay the first $1000. But in this instance the insurance company wouldn’t claim anything because it’s not even $1000 worth of damage.
If the damage was $1200, you would still pay the first $1000 and then the insurance company will pay the additional $200. You might think that this is not a very good deal but the amount of money that you will save each year having those high deductibles will more than offset anything that you would pay in the event of a claim over two or three years down the road.

Let’s think about this for a minute. Two things will eventually happen before you pay your deductible. You have to have a claim, like for instance be it an accident or some other vandalism. Vandalism might even have a smaller deductible so check with your insurance agent. Most vandalism claims are even smaller than your actual deductible. After that, your insurance company has to pay the claim before you pay the deductible. So you are responsible for the first $1000 and then your insurance company will take care of the rest.

An accident of even the most minor type these days can cost no less than $4000-$5000. So if you pay the first $1000, the insurance company is paying for the most of it. Imagine the amount of money you would be saving.
It’s estimated that more than 70 percent of all vehicle owners purchase collision insurance and more than 90 percent of those collision insurance policies carry a collision deductible of $250 or $500. By raising that deductible to $1000 drivers can save up to 40 percent on their premiums, and sometimes even more! Be sure to check out what options are available to you online at specialized auto insurance websites that can help you find the lowest rates in your area and get the most for your money.

If you’re stuck and need some help finding good information online try using Ezquoteguide.com for finding the right local insurance information you need right away to help you fulfill your auto insurance needs.

I focus on saving people money and writing on affordable niches. My primary focus is on affordable insurance. In addition, I have had a passion for affordable dental and medical care.

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