How Deductibles and Discounts Affect Auto Insurance Rates
Things to know when shopping auto rates:
Before you call or ask for a quote, have your auto policy in hand. Inform the agent of your deductible amounts and limits of liability, medical payments, uninsured motorist, towing and labor and rental if needed. This way you are comparing exact coverages in comparing premiums.
Don’t be afraid of higher deductibles. Low comprehensive and collision deductibles make up the biggest cost in an auto policy. Example…if you had a 100 dollar deductible on comprehensive coverage and a 250 dollar deductible on collision coverage, lets say this cost you 600 dollars a year. Now by increasing your deductibles to 500 comprehensive and 500 or 1000 dollars on collision, you could save two to three hundred dollars a year. If your car is financed, you need to check with the lender for their limits on your deductibles.
Naturally, no one can know when an accident may occur. When choosing a deductible for collision coverage, please keep this in mind. Weigh the risk and cost factors when choosing your deductibles. Consider if it is cost effective to choose the higher deductible. Ask your insurance agent to quote your insurance rates using the higher and lower deductibles. Compare the saving of the higher deductible over a six month, year or two year period in making your decision. In choosing the higher deductible, you are essentially (self insuring) a portion of the financial responsibility in the event of an accident in which you are at fault.
Multi line Discounts
All insurance companies give discounts for multi line policies. Meaning that if you have your auto, homeowners, life, health or business insurance with the same company, these discounts will be applied to all policies. If you are satisfied with a certain company, it could be to your advantage to have them quote all your insurance needs. Many times you can save hundreds of dollars with multi line discounts.