Should You Raise Your Auto Insurance Deductibles?
When Is It A Good Time To Raise Deductibles On My Auto Insurance policy?
Many of us are searching for methods to conserve cash. IST strives to offer the most effective combination of prices and insurance coverage to all our customers. We recommend that you evaluate your insurance program annually to ensure your insurance is correct and in line with your needs. We’ll generally contact you via email and/or phone to do a quick review or to schedule a good time for an insurance review. One of the things worth considering during a review are adjustments in deductibles. Raising deductibles can lower your costs without assuming too much risk.
Raising your deductible will lower your costs. Assume you pay $225 each month for your auto insurance that has a $250 comp. deductible and $500 collision deductible. By boosting your deductible to a $1000 comprehensive and $1,500 collision deductible you could possible save $75 per month. That is a $900 yearly cost savings. Assuming you don’t have any accidents, the savings would certainly practically pay for itself in a little time. (This is an example. Actual cost savings will certainly be based upon individual aspects).
If you increase your collision deductible to $1,500 and also have an accident the next day, you must pay the $1500. Are you prepped to handle that? Your deductible and risk tolerance are a personal choice and your economic situation figures in in the deductibles and protection you pick. We could examine your insurance coverage as well as provide deductible saving choices, so consider raising deductibles at your next review.
Last Thought and feelings– When should you remove your deductible?
There does come a time when it is not cost effective to keep any sort of comp/collision insurance. As vehicles age, the value may not be worth insuring with comp and collision. Eventually you have to think about the expense of insurance coverage vs. exactly what you may expect as a return. As an example, if you pay $500 for a six month policy, but your auto has a depreciated worth of $1,500, the expense may not warrant the insurance policy. In this example your annual insurance policy cost is a large % of your vehicles worth. Get more more from Heninger Garrison Davis if you have any questions, or would like to run some comparable auto insurance options.