If you’re one of those financial conscious motorists that would go out of your way to refill with gas at a cheaper station or even constantly monitor your tire pressure (which is great for safety as well), then you’re in for a treat.
There’s a rather simple way of saving money (in some states more, in others less) by lifting the deductible rate on your car insurance from $500 to $1,000. According to insuranceQuotes.com, an average driver can get a 9% savings on the insurance premium with that simple change. The amount you save can reach 16% if you change from $500 to $2,000. There are states that vary this amount though: Massachusetts is the greatest with a 19% save, while the rather “Scrooge” Michigan gives only 4%.
“It’s very interesting to see that in some states raising your deductible gives you a huge savings and in others it barely moves the needle,” said Laura Adams, senior analyst, insuranceQuotes.com. “In some states, you can save hundreds of dollars each year by signing up for a higher deductible, but in others, the reward is so small that it doesn’t make sense to risk the higher deductible. This is a good reminder that doing a little research and knowing what’s available to you can really pay off in the long run.”
Good states include South Dakota at 14% and Kansas, Wyoming and Iowa tied at 13%. Michigan’s high insurance premium is also due to some interesting facts: it’s the only state where the car insurance gets you covered with an unlimited personal injury protection plan and Detroit – for example, has a very high percentage of uninsured drivers, as much as 50% by some estimates.