Evaluate your deductibles

With almost any insurance policy, there is a relatively quick way to decrease your premium for that policy: Increase your deductible.

define: deductible
A specified amount of expenses that must be paid by the insured before the insurance company begins paying on a claim.

So, for example, if you have an auto insurance policy with a $500 deductible and you then increase that deductible to $1000, your monthly premiums will almost certainly decrease.

Why? Because you are agreeing to pay more out of pocket if and when something happens.

This is definitely a quick way of decreasing your monthly insurance costs, but is it always a good idea? Not always. Be honest with yourself.

If you think it is likely that you will have to file a claim or two in the next 12 months, choosing to go with a higher deductible may not be a wise financial decision.

Auto Insurance tips: This tip was originally posted on 2-16-2009 at 7:39 am.

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