Raising the amount of money you are willing to pay for a deductible can reduce the amount you pay each month on your insurance. When people are shopping around for the best deals, one great way to save money is to raise the deductible. You can save hundreds of dollars every year by raising your deductible from $250 to $500. Making sure you have money set aside to pay the deductible in the event of an accident will be important.
The deductible is the amount of money you pay for a claim before the insurance company pays for the damage. For example, if you have comprehensive and collision coverage on your car, you will need to decide how much money you are prepared to pay out of pocket if you are involved in an accident. Many drivers like the convenience of a low deductible so they are not hit with a huge expense if their car is damaged from an accident or a weather related incident. What they may not realize is setting aside the money you save on your insurance premium with a higher deductible may actually be the best way to save money.
If you are on a very strict budget and you don't have a lot of money to spend on insurance, you could raise your deductible from $500 to $1000. This will reduce the amount you have to pay for insurance, but it will cost you that amount of money out of pocket before repairs can be made. Saving money is important and there are other ways to do this without raising your deductible. Besides shopping around and comparing several quotes, you can also reduce the amount of coverage you have. If you are a good driver and you have not had any accidents, you will also qualify for a better rate. Before you purchase a insurance policy, make sure you have compared rates and you know you are getting a great deal.
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