Because of the current financial situation in which plenty of citizens of the United States find themselves, it is only common sense that some of them will be looking to cut down the expenses with their insurance policies. And because you cannot give up on your auto insurance policy, you will have to learn other ways of reducing the money that need to be paid on it.
We believe that at the moment the most efficient way of reducing your auto insurance premium is to joggle with the deductible level. For the ones of you that are not familiar with the term, setting a high deductible means that you will pay less for the insurance premium, but in case your car is involved in an accident you will have to take a larger amount of money out of your own pocket for getting it repaired. On the other hand a low deductible will make you pay more for the insurance premium, but you won't have to pay as much in case the insurance policy will be used.
It is up to you to set your deductibles and we strongly recommend you to do this only after you fully understand the concept and have made a thorough analysis of your situation. If you would like to pay as less as possible for your auto insurance policy you can set a high deductible, but you need to carefully assume the risk and think of how much you can afford to pay in case you are involved in an accident. Never think that nothing bad will happen to you!
But increasing your deductible over a certain limit is extremely risky and in the same time it might not worth it. Why? Simply because there is a point from which the insurance premium does not go down with the same rate as the growth rate of the deductibles. Therefore the best thing you can do is have a meeting with your insurance agent and make the calculations so that you will reach the perfect compromise between the risk, the insurance premium and the deductibles.