Lowering Insurance Costs – Tip #4 – Raise Your Deductible

Raise Your Policy Deductible


This tip is the one of the easiest ways to save money on insurance (as much as 25%), but you must be willing/able to afford to pay more on a claim.

A deductible is the amount of your own money that you pay or are liable for before the insurance will make payment.

The higher the deductible = The lower the premium.  The recommended or standard deductible is at least $500.   If you increase that amount to, say $1000, you will save money on your insurance.

During my research, one interesting perspective that I found was this:

“We should change our perception that insurance of any type is intended to cover all of our expenses when we incur a claim. Those days are over. Think of insurance as risk sharing. How much risk are you willing to assume?”

 

Thoughts?

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