US: car buyers can save big time increasing insurance deductibles image

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, 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, “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.