Why You Need Higher Car Insurance Deductibles

When you sign up for car insurance, you may think only of choosing the policy with the lowest deductible. After all, you don’t want to have to come up with $500 or $1000 in a claim. However, there are times when having a higher car insurance deductible could be a good idea. 

Saving You Money

One of the biggest benefits of choosing a higher deductible when you are shopping for car insurance in Salt Lake City or elsewhere is the fact that you save money on your monthly premiums. Because you assume more risk with a higher deductible, insurance providers will reduce your rates. 

You might be surprised at how much those savings can be. Just take a few minutes to get a sample quote online for a policy with a $250 deductible and one with a $500 deductible and see the difference. 

Take the difference in price and figure out how long it would take you to pay for your deductible with the savings. You would probably be able to save enough money for your deductible in a claim in less than one year or even six months. If you are a person with no claim history or only one on your record, you will be saving a lot of money. 

Reducing Your Debt Ratio and Monthly Payments

While you may not be thinking about buying a car or home right now, having a lower premium can reduce your debt ratio, not to mention your monthly expenses. This can help you look more attractive to creditors in the future when you do need to make a big purchase. In addition, you can be earning money if you put that savings in an interest-bearing account. While the savings may be small, it can add up over time as long as you stay claim-free.

Be a Better Driver

When you know you are going to have to come up with $1000 or more in a claim, you may pay more attention to your driving. You won’t take chances because you don’t want an accident and to pay out that large deductible. While not everyone will think about their deductible when they are out on the highway, it can make them more conscious in their driving habits, especially if they have had a claim in the past. 

Tips for Raising Your Deductible

Make sure the deductible you choose is one you can live with. Set aside the money and put it in a savings account in case the worst happens and you have to pay out. Make sure you follow the terms of the lender where you are financing your car if you don’t own it outright. Some lenders put a cap on the amount of the deductible, and you must adhere to those rules.

Having a higher deductible can be a good decision and help you save money. Shop around for the best rates on auto insurance in Salt Lake City and compare pricing with different deductibles. 

ASA Insurance provides excellent coverage for car and home insurance in the Salt Lake City area with the lowest rates to the English and Spanish communities . Affordable rates and superior service for all home, auto and business/commercial insurance needs.