Choosing Incredible Insurance Coverage

After struggling for years with an incredibly expensive insurance plan, I realized that there had to be something that I could do to make things right. I started shopping around for a business that could help me to make things right, and I was able to find an insurance policy that fit well with my budget and my lifestyle. The premiums were low and the coverage was great, which is almost unheard of these days. This blog is all about choosing incredible insurance coverage for you and your family, so that you can enjoy a happier, healthier life. Check out this blog for more information.

How To Determine If Raising Your Home Insurance Deductible Is Worthwhile

Insurance Blog

You may have heard that raising the deductible on your homeowner's policy will cause a decrease in your premiums, and this is true; however, it's important to consider whether this is a worthwhile move to make in the long run. Here are several things to consider if you are trying to determine if you should raise your deductible to get a lower rate.

Understand that higher deductibles equal lower rates

It is true that you can save money on your home insurance by raising your deductible, and the amount you can save will vary. In most cases, raising your deductible from $500 to $1,000 may end up helping you save around 25%. In other words, if you were paying $1,000 per year for your home insurance with a $500 deductible, you may only have to pay around $750 if you raise it to $1,000.

Calculate your savings to determine if it's worthwhile

If you are trying to decide if this is worthwhile, you will need to look at a couple of factors. The first factor is the amount you would have to pay now if you filed a claim compared to the amount you would have paid. In this example, you would now have to pay $1,000 if you filed a claim, and this is $500 more than you would have paid.

The other factor to consider is how long it would take to make this savings worthwhile. If you would have to pay an extra $500 if you filed a claim but would be saving $250 per year, it would only take going two years without a claim to make this deal worthwhile. In this situation, it would make sense to increase your deductible.

If it would take 10 years to make up this difference, raising the deductible on your policy might not really be very valuable, because the average person files a homeowner's claim only once every nine years.

Save the money if you go through with this

If you decide to go through with raising your deductible to save money, you should plan on saving the amount you save on the insurance costs so you will have it if you need to file a claim. Insurance is great to have, but coming up with $1,000 without any notice is not easy for all families. If you can put the money you save into a saving's account, you will have it ready for use if you ever need to file a claim.

Saving money on homeowner's insurance is something a lot of people would like to do. If you are interested in this, check out sites like and contact an insurance agent to find out ways you could decrease your premiums.


6 June 2017