Car insurance deductible savings
Reader question:
How much can I save on my premium by raising my car insurance deductible?
Allen
Thanks for asking, Allen.
I really hate car insurance deductibles, but you have to come to term with the fact that they exist and you have to deal with them. Your car insurance deductible is the part of your responsibility for the charges for the damages that happen to your car in a collision or other type of problem with your vehicle. So, if you need repairs that cost about five thousand dollars and you have a car insurance deductible of five hundred dollars, then you will have to pay five hundred dollars and your car insurance company will take care of the other $4,500.
While paying this deductible is a hassle, you can easily use it to get the best deal out of your car insurance premium for your fast car. This is pretty easy to do by raising your car insurance deductible, and if you raise it you can save as much as forty percent on your auto insurance premium. If you save that much, that’s several hundred dollars every year.
Now think about how many times you’re going to get into a car accident over the course of your life for which you will have to pay a car insurance deductible (an at fault accident). Let’s set a high number of five times, unless you’re a particularly bad driver. If you have a one thousand dollar deductible, then you will have paid five thousand dollars in car insurance deductibles over the course of your life. However, say you save three hundred dollars every year by raising your car insurance deductible. If you are driving from the age of sixteen to the age of sixty five, then over your entire driving history you will have saved almost fifteen thousand dollars, ten thousand dollars after the deductibles you’ve paid. That’s a pretty big addition to your savings account, and if you really are adding this money to a savings account, then there’s interest as well.
Cheers,
Fashun Guadarrama.
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