Low insurance deductibles often cost more than they are worth

Credit: www.marketbusinessnews.com

The National Association of Insurance Commissioners defines “deductible” as “Portionof the insured loss (in dollars) paid by the policy holder.”

Low deductibles may well be costing you more than they are worth in two ways:

1) The difference between a $500 and a $1000 deductible is, well, $500. If you go several years without filing a claim, you might pay more than $500 in premium to save yourself that $500 at claim time.

2) Raising your car deductibles from $500 to $1000 and your liability & uninsured motorists’coverage from 100k/300k to 250k/500k oftentimes results in an absolutely negligible difference in premium. Sometimes it even SAVES you money. That same amount of premium can buy you either $500 in coverage or $250,000 in coverage. Which is a more prudent use of your money?

You may not like me for a few days after a hailstorm or a fender bender in a parking lot. However, as an attorney friend of mine likes to say, you should insure against those things that interrupt your life and not those things that interrupt your week.

Doug Newman

30+ carriers ... 40+ states
Auto-home-commercial-group benefits

epsinsures@gmail.com - www.epsinsures.info

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