If you want to find an easy way to save money on your Newfoundland auto insurance coverage, consider raising your deductible. The deductible is the amount you agree to pay out of pocket before the insurance company will pay out on any claims you make on your car insurance policy. If you have decided to buy a policy with a $250 deductible and the amount of damage to your car costs $1,000 to repair, you will be responsible for paying the $250 and your insurance company will pay for the balance owing for the repairs.
Deciding to increase your deductible can help you save money on the cost of your coverage. When you agree to pay a higher amount yourself, you are presenting a lower level of risk to the insurance company and you qualify for better rates on your coverage.
Before deciding whether this is the right choice for you, take the time to get quotes from a number of Newfoundland auto insurance providers so that you can find out how much you would pay for your coverage at different deductible levels. Don’t let lower rates be the only thing you consider; you also want to be sure that the deductible level you choose is a level that you will be able to pay without causing financial hardship.
Do think about your financial situation carefully before you make a final decision about your coverage. Shopping around can help you save money on your auto insurance, too.