Are you looking to make savings on your insurance premium? Of course, you are. And here at Aldrich Taylor we do that every day for our clients.
One of the most common questions people ask is whether they should raise their deductible to cut their policy costs. The question is not as simple to answer as you might think. But we can help you make your decision.
What is a Deductible?
Nearly all auto and home insurance policies (and some others) have a built-in clause that says how much you have to pay out of your own pocket when you make a claim, before the insurance company kicks in.
That's a deductible. So, say your policy has a deductible of $200 and you're claiming for damage that will cost $500 to put right, you'll pay the first $200 and then the insurer will pay the remaining $300.
But if, say, the damage will only cost $250 to put right, you'll still have to pay your $200, while the insurer gets away with a $50 contribution. In that case, you may think it's not worth claiming, especially if th ...