Based on Floridas basic auto insurance coverage if i have a deductable of 100. should i increase it to 500 why

Question

will increasing the deductable to 500. save on my monthly insurance and can i apply the savings towards increasing my liability limits. Please explain why

Answer 1

It depends on the car. For the most part you will save money by increasing the deductible but if the car is old then you won't notice much of a difference. If you go to your insurance company website you should be able to get quotes on what changes to your policy will do.

Answer 2

Yes, your rate will go down if you pick a higher deductible. It may not be much, but it will go down. The real question is if you had an accident and it was your fault, or even if it wasn't but for some reason you couldn't get the other insurance company to pay immediately, how easy will it be to come up with the $500.00 to get the car fixed. The increased liability limit is always a good idea, and if you raise the deductible you might be able to increase the liability one range higher or two depending. It could be there you're not paying that much under your collision or comp to make that much of a difference.

You need to call and ask. You are not locked into that change if you call for a quote.

Answer 3

Yes. When you raise your deductible, your premium will go down. This would allow you to buy more liability insurance -- possibly a LOT more.

When I was younger, the rate reduction when increasing my deductibles was very close to the change in the deductible -- shifting from $100 to $500 cut my premium by nearly $400. Subsequently boosting my liability from 10 20 5 at the time to 100 300 50 only cost me about $100 extra per year so my net cost dropped by around $300 per year.

The savings aren't so great now that I'm in my 50s but then again my insurance is pretty cheap to begin with; I've been accident and conviction free for many years.

Answer 4

Increasing your deductible may save a little bit on monthly premium and thus allow you to spend the saved money on higher liability limits, but from my experience, a deductible change usually doesn't make a very drastic difference in premium. I guess it depends on your state, your vehicle, and your driving history.

Keep this in mind...would you rather pay more premium each month and hand out a 100 bucks when you're involved in an accident, or would you rather spend less per month and have to hand out 500 bucks when you're in an accident?

I personally value lower deductibles because I live paycheck to paycheck and if I were to have a wreck, the lower deductible would help me out a lot. So it's also a matter of personal preference.