When looking to reduce your auto insurance premium, one of the first options that comes to mind is to raise your deductibles. However, this requires careful consideration and calculations before you’ll know if its a good idea. Weigh the reduction in premium against the additional amount you’ll be responsible for in case of an accident. For example, if you save $100 per year in premiums, but will have to pay an additional $1000 in out-of-pocket expenses for a claim, it would take 10 years of accident-free driving to recoup the additional risk. Use your own numbers and determine the risk for yourself. Only you can be the judge.
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