Who Else Want To Get An Immediate 10% Savings On Your Auto Insurance

If you serious about saving at least 10 percent on your auto insurance, this will be the most important message you will ever read. Here is why: Recent study shows that more than 64 percent of drivers could see an immediate 8-10 percent savings on auto insurance premiums just by raising their deductibles.

Based on a sample of the auto insurance shopping habits, the majority of drivers have Collision and Comprehensive deductibles set at $300 or $500. By increasing these deductibles to $1,000, drivers can see immediate rate savings of up to 10 per cent, without even switching auto insurance companies!

Making the difference with deductibles - how it works
A deductible is the portion of an auto insurance claim you agree to pay. Your auto insurance company picks up the rest. By agreeing to take on more financial responsibility in the event of a claim, the auto insurance company considers you less of an insurance risk and will adjust your premiums accordingly. In other words, the higher the deductible you choose, the lower your auto insurance rate.

Why raising deductibles makes sense
In today's auto insurance climate, most people would not make an auto insurance claim unless they really had to. This is because auto insurance companies raise your insurance rates when you have more than one claim on your record - they may even cancel your policy altogether!

It doesn't matter the amount of the claim you make - it's the number of claims that can cause your rates to go up. Auto insurance companies will determine your insurance rate, in part, on the likelihood you will make a future claim. The more claims you have made in the past therefore, indicates you are more likely to make one again. Even if your past claims were only for minor damages, the auto insurance company will consider you to be a higher risk of making a future claim, big or small.

This is why some people will absorb the cost of small car repairs themselves, rather than involve the auto insurance company. They keep their claims history clean and save their auto insurance for when they really need it and can't afford to pay for damages themselves.

Would you make an auto insurance claim for $700? Probably not if you knew your rates might be affected. Auto insurance claims stay on your record for up to 10 years and with rate increases, you could be paying far more than $700 over the long run. So, if you wouldn't make an auto insurance claim for less than, say, $1,000, then why have deductibles lower than $1,000? You might as well raise them as high as you can afford, and enjoy the savings.