If you have car insurance, you almost certainly have a car insurance deductible.
If you ever need to make a car insurance claim, the deductible is the amount you pay out of pocket before your insurer pays out for the rest of the damages.
But there may be many things you don’t know about your deductible – including how to use it to save money on your car insurance premium. Here are 3 things to know about your auto insurance deductible.
1. Raise your deductible to save money.
The standard auto deductible is $500 – but a recent insuranceQuotes.com study found that if you raise it to $1,000 or even $2,000, you could save up to 15 percent on your premium.
However, if you have to make a claim, you will need to pay this amount out of pocket – so make sure you have the deductible amount on hand, say in a savings account or emergency fund.
2. Your policy has more than one deductible.
A standard auto insurance policy is comprised of three parts – collision, comprehensive and liability. Many people believe they have just one deductible on their policy but both the collision and comprehensive portions of your policy have their own separate deductible (typically $500) so it’s possible to raise or lower the deductible on either, or both, parts.
3. You can change your deductible at any time.
If you decide to change your deductible amount, you can do this at any time – you don’t have to wait for your renewal period. Just pick up the phone and call your agent – and you could start saving money immediately.