Understanding your deductible options when insuring a car or a home is an important part of getting the best value out of your insurance policy.  A deductible is basically the amount “deducted” from the amount of your loss at the time of a claim.  This is the amount that you - as the car or home owner - must pay in the case of a claim, regardless of the total amount of loss.

One of the best ways to save money on a homeowner or auto insurance policy is to raise the deductible.  For example, increasing the deductible in your auto insurance policy from $250 to $500 can reduce collision and comprehensive coverage premiums by 15 – 30%. 

If you raise your homeowners deductible from $500 to $1000, you are raising the amount of risk for yourself by $500, but the savings may be enough to cover the additional risk within a few years.  Most people typically go five to ten years between claims, so you may want to consider the savings you will get each year.

It’s very important to remember that when you raise your deductible you are adding an additional amount of risk on your part.  Be sure the amount you choose as a deductible is an amount you have the means of paying in the case of a claim.   

Give us a call to help you get the best value by reviewing your deductible options and finding the right balance between coverage cost and premiums.

Posted 1:35 PM

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