Archive for June, 2013
Maybe you are a good driver with no traffic tickets to your name. Your credit score may be great as well. But you may still be struggling to cope with your vehicle insurance premium. Then it is time to look at alternative methods that will give you further savings. This should be the route to follow if you want to still have decent level of protection.
Quite a few people choose the easy way of dropping some coverage like a stone. It may look to be a smart decision at the time. However, you will be cursing yourself when you end up in an accident and you don’t have coverage. Who is going to compensate your losses in such cases? You may run into serious financial hardship especially if you don’t have enough savings.
Do you have enough money to buy another vehicle if the current one is totaled? Can you get on with your life without disruptions something happens to it? Many people needs their automobiles to go to work, drop kids to school and pick up grocery. So, think carefully before giving up valuable protection from your carrier.
Let’s have a look at how deductibles can be used to save money on premiums. First of all, let’s see what are they and how they work. Deductibles are set when you are buying a policy. These are the amounts you and your provider agreed. You accept to put your hand in your pocket if you have a claim. How much you need to pay is determined by deductibles.
For example, it is set $300 for collision coverage. This would mean that when you have a collision claim of $1000, you will be paying $300 and your carrier will be paying $700. No matter what the size of the damages you will always be paying this agreed sum as your share and the rest is paid by auto insurers.
Generally, collision and comprehensive coverage has deductibles but liabilities portion doesn’t have it. Most policies comes with pre-determined amount but they are not set in stone. You can either increase or decrease the amounts or buy another policy with the amount you are happy to commit yourself to.
The general rule is that when the deductibles go up the premium should come down. How much it will come down depends mainly on the provider. Some companies can put it right down while others doesn’t really do much. That is why you need to get quotes for various levels and see the savings.
When you are agreeing to take more of a risk with the claims you are saying a few things including paying more as your share. People who prefer higher deductibles are the type of drivers who are confident in their skills behind the steering wheel. They don’t expect to have accidents and they don’t plan on making small claims. This is the type of policyholder many companies are look for.
Make no mistake and change your auto insurer if they are not offering you sufficient discounts for promising a lot of things in return. As explained above, it is more of a set of mind than simple money issues to make adjustments on your deductibles.