Buying insurance, no matter what kind, can be a complex process and you’ll find yourself faced with several questions. Which type of coverage should I get? How much coverage do I need? How high of a deductible should I have? Let’s take a look at the last question, and see how much money you can save by choosing a policy with a higher deductible.
The first insurance policy, with no deductible, costs $700 a month. Multiply that by twelve months and you’ll pay out $8,400 in annual premiums. Since there’s no deductible, your total annual cost is $8,400 if you don’t ever use the policy. On the other hand, if you choose a high deductible insurance policy that has a $250 monthly premium, you’ll pay out $3000 during the year. If you are so lucky as to never need to use your policy, then you’re savings will be $450 a month, or $5,400 a year. Even if you do need to pay your deductible, you’re only paying $5000 for the year, which is a savings of $416 from the no deductible coverage. Imagine what you could do with an extra $416 each and every month!
Choosing a policy with higher deductibles is the easiest way to lower your insurance premiums significantly. However, you will need to be prepared to pay the deductible, should the unfortunate happen. An easy way to do this, without impacting your budget is to set aside the difference between your old, higher priced monthly payments and your new, less expensive ones. Put that $416 aside each month, and in just 5 months you’ll have a $2000 emergency fund to use for paying your deductible. Keep this money tucked away in a special savings account so that it’s always available.
To find the best high deductible insurance policy in Coppell, Texas, contact us today. We’ll help you find a policy that meets your needs, while saving you as much money as possible.