Are you a new driver trying to figure out how to save money on your monthly insurance premiums? Then chances are that someone, somewhere has suggested that you do this:
Raise your insurance deductible to lower your insurance premiums.
But just how valid is this advice? Let's first begin by examining what a deductible is, assuming that you don't know already. Quite simply, your deductible is the sum of money that you agree to pay your insurance company before you become eligible to file a claim with them. While it's true that the higher your deductible is, the lower your monthly premiums are, does that mean that you should instantly call your insurance company and ask them to raise your deductible?
This is because, while this advice certainly is a valid one, doing this could potentially jeopardize your finances down the road. As a general rule of thumb, we only advice our clients to raise their deductible to save money each month as a last resort. Unless you know for a FACT that you can afford to shell out your deductible should the worst case scenario happen, we recommend that you spend some time looking at the other options available to you. Because trust us... there are other options out there. It's just a matter of you finding them.
For more information on how you can save money on your Edmonton new driver policy, feel free to browse through some of our older blog posts or to give us a call. We'll be more than happy to help.