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413.536.8386 (fax)
150 Lower Westfield Road
Holyoke, MA 01040


18Jan. 2017

Reduce Your Premiums By Increasing Your Deductible

If you open your wallet and expect to find moths flying out or you avoid checking your bank balance because a number that low is just painful to look at, you’re not alone. A lot of people feel the pinch of low funds, especially around the beginning of the year. It’s no wonder you’re probably looking at all your expenses, wondering exactly where you can cut costs and save money.

Lower Your Massachusetts Auto Insurance Premiums

A lot of people in a similar situation look at all the expenses in their life that feel “unnecessary” which often, unfortunately, includes their Massachusetts auto insurance coverage. They usually tell themselves that, because they haven’t filed a claim recently, they don’t really need the protection offered by their current policy. Remember, the point of insurance is to make sure you’re not financially ruined in the event of a major car accident or that you can replace your vehicle if it’s ever stolen or vandalized.

Before you decide to reduce your coverage to save some money, consider another option. Instead of ditching your comprehensive or collision coverage or lowering your liability levels, consider increasing your deductible instead. You could pay a lot less for your auto insurance.

What to Consider Before You Raise Your Deductible

Before you request a deductible increase, you need to understand what it will mean for you later on down the road. A higher deductible will require you to pay more money out of pocket before your insurance company will pay a claim. If your current deductible is $100 and you bump it up to $1000, your monthly premiums will drop but you’ll be out that much money anytime you file a claim.

If you don’t already have an emergency stash or a savings account, start one. Many people rarely file claims so if you can save just a few dollars a month, you’ll likely have the cash you need when it’s time to file a claim. Having an emergency fund isn’t a bad idea in general and can help you out if you ever need to file a renter’s or home insurance claim, too.

The other thing to consider is how often you’ve filed claims in the past. For drivers who find themselves in fender-benders every year or so, consider how much you’ll really save by increasing your deductible. If the cost difference between your monthly premium isn’t more than paying your deductible once a year, it might not be worth the change unless you have a healthy savings built up.

There are plenty of things you can do to reduce your expenses. When it comes to your insurance coverage, you’ll want to make sure that you don’t leave yourself open to financial ruin from one big accident. Reducing coverage is almost always a bad idea. Increasing your deductible could be the answer to keeping more cash in your wallet.

If you’re looking for ways to lower your auto insurance costs, give us a call. We can look at your current policy or give you a quote for a new one.


Contact Us for Quotes, Claims, or Questions

Call us at 413.536.8380

Visit us at 150 Lower Westfield Road, Holyoke, MA 01040

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