How to Save Big Money on Car Insurance
Looking to lower your car-insurance premium? Aren’t we all? Well, one easy way to cut the cost of coverage is to raise your deductible.
Still, if you increase your insurance deductible – that is the amount a policyholder has to pay before coverage starts – from $500 to $2,000 the national average saving is 16 percent. In some states the reduction was nearly double that at a whopping 30 percent! Without question this is one of the easiest ways to save money on insurance.
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But two-grand for a deductible is a bit steep for some drivers. What if you increase that number from $500 to a more reasonable $1,000? Well, nationally that still results in a nine percent savings.
Residents of Massachusetts, South Dakota, Kansas and Wyoming should reduce their costs the most from this deductible increase. Bay State drivers save the most at more than 19 percent!
On the other side of the coin, motorists in Michigan, Florida, Louisiana and North Carolina get thrown under the bus. Drivers in The Mitten State really get screwed, saving less than four percent by doubling their automobile insurance deductible from $500 to $1,000. Exacerbating this issue, Detroit residents already pay the highest rates for insurance in the whole country.
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Born and raised in metro Detroit, Craig was steeped in mechanics from childhood. He feels as much at home with a wrench or welding gun in his hand as he does behind the wheel or in front of a camera. Putting his Bachelor's Degree in Journalism to good use, he's always pumping out videos, reviews, and features for AutoGuide.com. When the workday is over, he can be found out driving his fully restored 1936 Ford V8 sedan. Craig has covered the automotive industry full time for more than 10 years and is a member of the Automotive Press Association (APA) and Midwest Automotive Media Association (MAMA).
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