Increase Your Deductible, Save on Auto Insurance

Increasing your deductible is one of the best ways to reduce your auto insurance premiums. Your deductible is the amount you pay out of pocket before your auto insurance coverage begins to kick in. Naturally, the more you agree to pay with your auto insurance deductible, the lower your auto insurance premiums.

The deductible amount of your auto insurance policy usually comes in $200, $500, $1000 and $2500 amounts. Remember, your deductible applies to your collision and comprehensive auto insurance coverage.

You might be surprised at how much bumping up your deductible could save you. Increasing your auto insurance deductible to $500 may cut your bill by as much as 15 percent. A deductible of $1000 can yield up to 40 percent off of your auto insurance bills.

A very high deductible is a good idea if you are experiencing increased auto insurance rates due to an auto accident. The high deductible can help offset some of the increased costs due to your auto accident. Keeping your deductible amount set aside can help alleviate any anxiety over coming up with a high deductible amount when you need to file an auto insurance claim.