Attention drivers! Experts recommend increasing your auto insurance deductible to reduce the premium. But should you? A new state-by-state, comprehensive study by insuranceQuotes shows that savings vary considerably depending on where you live.
According to the study, Massachusetts drivers save, on average, 17% when increasing a deductible from $500 to $1,000—the most significant difference in the country. Meanwhile, the same deductible increase in Michigan only results in 4% annual savings—the lowest in the country.
For those looking to raise their deductible from $500 to $2,000, South Dakota drivers benefit the most, with a 29% average savings. Meanwhile, the same deductible increase in North Carolina only results in an average annual premium discount of 6%.
Across the nation Americans save an average of 15% ($126) by increasing their deductible from $500 to $2,000, and 9% ($72) by increasing their deductible from $500 to $1,000. But despite these savings, a higher deductible isn’t for everyone.
“Although the nationwide average savings for increasing your auto deductible is significant, it may not make sense for drivers in certain states. If you can’t afford the higher deductible’s out-of-pocket costs for filing a claim, you’re better off keeping a lower deductible,” said Laura Adams, senior insurance analyst at insuranceQuotes.
The full report, along with additional tips and insights on how to save on auto insurance, is available at http://www.insurancequotes.com/auto/insurance-deductible-savings-11017.
insuranceQuotes commissioned Quadrant Information Services to calculate rates using data from the largest carriers (representing 60-70% of market share) in each U.S. state and the District of Columbia.