Save five to 10 per cent on your auto insurance premiums simply by raising your deductibles.
Making the difference with deductibles - how it works
A deductible is the portion of an insurance claim you agree to pay. Your insurance company picks up the rest. By agreeing to take on more financial responsibility in the event of a claim, the insurance company considers you less of an insurance risk and will adjust your premiums accordingly. In other words, the higher the deductible you choose, the lower your auto insurance rate.
- Related read: Helping You Save: The Value Of Deductibles And Discounts
When is it the right time to increase your car insurance deductible?
Well that depends, when was the last time you needed to make a car insurance claim? If you've never submitted a claim, or it was years ago, increasing your car insurance deductibles-to an amount you can comfortably live with-still offers you the protection you need in the event something happens, but keeps cash in the bank today.
You may have more than one deductible as part of your policy
Often, drivers think collision and comprehensive coverage are one; but, they're actually two different car insurance coverage options. Collision coverage offers protection if your car is damaged in an auto accident, while comprehensive coverage offers protection for non-accident related claims (theft and vandalism are two common examples.) Both coverages-collision and comprehensive-have their own deductible and these deductibles do not have match. You can increase just the collision deductible, just the comprehensive deductible, or both, depending on what you think works best for you and your comfort level.
- Related Read: Traffic Tickets, Fender-Benders And Your Car Insurance
- Related Read: Auto Theft-The Kanetix Top 10 Most Stolen Vehicles In Canada
How much could raising your car insurance deductibles save you on insurance?
If your deductible is set to $500 or lower, increasing your deductible (or deductibles) could reduce your auto insurance costs by five to 10 per cent. It's an option that shouldn't be overlooked when seeking ways to keep your car insurance costs under control. When you compare car insurance quotes online at Kanetix.ca, you can change your deductibles to see the impact on your rates. See how much you could be saving now!