We all know that increasing the deductible on our insurance policies is going to lead to reduction in the premium. This is something that we have been informed by our insurance agents as well. However, the moot question is- by how much will insurance premium be reduced?
More often than not, our insurance agents satisfy us by giving a perfunctory discount of ten to fifteen percent on the insurance premium. According to the Insurance Information Institute, a 400% increase in your deductible should bring your insurance premium down by 40%.
That is a very significant reduction in the premium. This will bring down the commission that your insurance agent earns. In such a scenario, it is not surprising that the agent tries to settle your deal with just a 10-15% discount.
How can you overcome this problem? You simply have to log on to the World Wide Web and check out multiple insurance quote web sites. How do these web sites help? Fill the form and specify the deductible as $250 when submitting information.
You will get estimates based as per the information provided. Now, log onto the World Wide Web again and submit the form again. This time, specify the amount of deductible as $1000.
This time, you will get estimates from top reputed insurance companies on the basis of a $1000 deductible. Compare the two quotes that you have obtained and check the extent of reduction in the premium.
Not only will you find out which insurance company offers the maximum discount but you will also find out the reasons for the same. The company may be doing very well and may want to increase its market share or maybe in a dire state and may be desirous of pulling customers from its competitors. In either case, you can take advantage of this information to negotiate a better deal.
If you have opted for any other option that ought to bring your premium down, like multiline insurance or multi vehicle insurance, then your increased deductible should fetch you more than a 50% discount. That is definitely a great deal as far as your cost of insurance is concerned.
Florida Auto Insurance
