One good strategy that Missouri car insurance buyers can use to reduce the costs of coverage is to increase their deductible. The deductible is the amount that the policyholder agrees to pay out of pocket before the insurer will pay out on a claim. When a buyer chooses to pay a higher amount toward the cost of any claims made against his or her policy personally, the insurance company rewards him or her with lower premium rates.
Most insurance companies offer policies with different deductible levels. A buyer who wants to find out how the deductible level will effect his or her premiums should ask for quotes from different providers that reflect a few different premium levels.
A customer who buys a policy with a deductible that is $1,000 will be able to get a lower premium rates, but it’s important not to set the deductible so high that it will present a financial hardship after an accident. In a case where the damage to the vehicle does not meet the deductible level chosen, the policyholder is fully responsible for this expense.
The way to decide whether a higher policy deductible makes sense is for the policyholder to consider his or her budget and overall financial situation. The potential for savings on premiums must be balanced against the out of pocket expense required if an accident occurs. In a case where paying a high deductible would create financial hardship, sticking with a lower one is probably the best choice.