Will Increasing your Deductible Decrease your Monthly Premiums?

Insurance is not something that most people like to spend a lot of time thinking about or researching. Most people want to pay the least amount each month and not think about their insurance coverage until they need to file a claim. Choosing a high deductible is one way to lowers your insurance premiums each month, but it could also end up costing you more if you ever have to file a claim. Make sure to choose the right combination of deductible cost and premium cost to ensure that you have the right amount of coverage.

The deductible of your insurance policy is the amount that you have to pay out of pocket before your coverage kicks in. Every insurance plan has a deductible, from auto to life insurance. Choosing a higher deductible will lower the amount that you have to pay each month for your policy. It also means that you will have to pay more out of pocket if you ever make a claim. Having a high deductible on some insurance policies, such as your homeowners insurance may not be an effective cost decision. Make sure to talk to your insurance agent to figure out when it is best to increase your deductible to save money.

Make sure to look at your finances before increasing your deductible. If you can afford a higher deductible, meaning you have the financial means to pay a larger lump sum out of pocket, make sure to check to see if it will reduce your policy cost before you choose that option. Make sure not to choose a large deductible if it does not decrease the cost of your policy, even if you can afford it.

When choosing an insurance plan with a deductible and monthly premium that will fit into your budget, contact Lou Aggetta Insurance Services.