No one likes paying for insurance – we don’t even like to get auto insurance quotes – even though we all know we need it in our modern society. In most states car insurance is required by law to drive a vehicle. Having insurance is not something we can often directly benefit from – until something goes wrong.
One way to lower your auto insurance premium is by requesting an increase in your deductible – the amount that comes out of your pocket before the insurance company starts writing checks.
Now this sounds good at first – but what if you increase your deductible from $250 to $1000 and then are involved in an accident. You now have to come up with $750 more than before to get your car repaired.
You must have the necessary cash in reserve – i.e. an emergency fund of $2000 to $5000 – cover such an event (or anything else – like having to replace a home appliance). If you don’t have such a fund in place and choose to raise deductibles then – please – put the premium savings in a good money market fund until you have your emergency fund established.
So, if you have to shell out more money for an accident doesn’t that cost more than the savings enjoyed? Think about – over your driving career – how many claims you have filed against your auto insurance. It doesn’t take a big reduction in premiums to create an net savings overall.
It is imperative that you establish your emergency account to handle the higher out-of-pocket costs – make it a priority to get that in place as soon as possible.
Don’t forget that aggressively shopping your auto & home insurance is the fastest way to save money on your insurance. Using a free, no obligation online service makes it easy to do in less than 10 minutes. Go to http://cheapcarinsurancequotesnow.com/ to see how much can save.