Insurance is one of those things you pay for, in the hopes you never need it. Whether it’s for your car, your home or your apartment’s belongings, the protection insurance offers brings you peace of mind.
However, that peace of mind comes with a price, and sometimes that price can be…well, pricey.
Every insurance company offers discounts to help you offset the costs, such as a good driver discount or combining you auto insurance with your home or renters insurance. But there is something else you can do to drop your premiums: up your deductible. The higher your deductible, the less you will pay in premiums.
Now, don’t go crazy and choose a $2,500 deductible if you can’t afford to pay it if you ever need to file a claim. Having an unafforadable deductible defeats the purpose of having insurance. So, if you choose a higher deductible, either set aside the deductible in a savings account just in case. Then if you need to file a claim, you can pull the money from the account. Bonus: you can keep the interest accrued.
So, up your deductible and save some cash, and save some cash to pay your deductible.