Low insurance deductibles often cost more than they are worth
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| 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
303-902-5503
30+ carriers ...
40+ states
Auto-home-commercial-group benefits
epsinsures@gmail.com - www.epsinsures.info
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