Deductibles represent the amount of money you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30%. Savings can be even higher for selecting a $1,000 deductible.
"Increasing deductibles can be a prudent way to reduce your auto insurance premiums, but only if it's not going to put you at financial risk," Montanaro says. "That's where your emergency fund comes into play. At an absolute minimum, you've got to have enough set aside to cover your deductibles."
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