- You have probably heard about the option of increasing your deductible to pay less on your insurance. This works for all kinds of home, auto, watercraft insurance. Often people want the "lowest deductible" because they don't want to pay very much in the event of a loss. On the flip side, every time I sell an insurance policy people love to say "I am not going to have a loss, so I don't want to pay a lot". Well, this is a great time to reflect on how much you are paying on insurance, and if you truly do not believe you are going to have a loss, then why not take on more of the risk yourself and increase your deductible. Just ask yourself this first, if you have a loss are you able to come up with $500, $1000, $2500, $5000, etc right away to cover your part of it? If you are, and you aren't going to suffer in covering the first part yourself, then take the higher deductible and as long as you are comfortable with esentially self insuring for that first amount (the value of the deductible you choose) then you can pocket the savings on taking on the higher deductible. On home insurance for example, we often see people saving up to $500 per year for taking a $2500 or $5000 deductible.
Something to consider.
However, please do not put yourself in a financial strain to increase your deductible. The possibility always exists that you can save $500 on your insurance premium this year, and then all of a sudden, three months down the line you have a loss and you end up paying out $2500 on a deductible - or worse yet, you have a $2000 claim, and you can't get any help from your insurance. Take the time to evaluate where you are really at and make the right decision for you.
- Look for discount Opportunities or Policy packages that give you advantages you need at no additional cost.