In today's economic crunch, people are always looking for ways to save more money and spend less. One of the fastest and easiest ways to save some extra green is to increase the deductibles on your car insurance. The higher your deductible the lower your premium! Make sure though that you have enough money in savings to cover the higher deductible, the insurance companies will not pay out until you have paid your share.
Step 1
Research the book value of your vehicle using websites like Edmund.com and KBB.com. Decide whether or not it is in your best interest to carry physical damage coverage. Physical damage coverage will cover your vehicle in the event of fire, hail, theft, vandalism, collision or glass breakage. If your vehicle is only worth $1,200 and you have a $1,000 deductible the most you can hope to recover from your insurance company is $200. In a scenario like this you would want either a lower deductible or you may chose not to carry this coverage at all.
Step 2
Know that your policy has two different deductibles, before you talk to your insurance agent. One is for comprehensive claims that covers fire, theft and basically any damage caused by something other than collision and a collision deductible that covers your vehicle in the event of a collision with another object such as a car, tree or embankment.
Step 3
Determine how much you will be able to pay out of pocket, to repair or replace your vehicle, if there is an accident. Your out of pocket expense will normally be between $50 and $1000.
Step 4
Contact your agent and request a quote on your account with higher deductibles. Many times you can save enough in premium within 2 or 3 years to cover the increase in your deductible.
Step 5
Ask your agent to make any changes you approve and to send you a detailed copy of your amended policy.
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