—It Depends Where You Live, According to New State-by-State Analysis—
AUSTIN, Texas–(BUSINESS WIRE)–Attention drivers! Experts recommend increasing your auto insurance
deductible to reduce the premium. But should you? A new state-by-state,
shows that savings vary considerably depending on where you live.
According to the study, Massachusetts drivers save, on average, 17% when
increasing a deductible from $500 to $1,000—the most significant
difference in the country. Meanwhile, the same deductible increase in
Michigan only results in 4% annual savings—the lowest in the country.
For those looking to raise their deductible from $500 to $2,000, South
Dakota drivers benefit the most, with a 29% average savings. Meanwhile,
the same deductible increase in North Carolina only results in an
average annual premium discount of 6%.
Across the nation Americans save an average of 15% ($126) by increasing
their deductible from $500 to $2,000, and 9% ($72) by increasing their
deductible from $500 to $1,000. But despite these savings, a higher
deductible isn’t for everyone.
“Although the nationwide average savings for increasing your auto
deductible is significant, it may not make sense for drivers in certain
states. If you can’t afford the higher deductible’s out-of-pocket costs
for filing a claim, you’re better off keeping a lower deductible,” said
Laura Adams, senior insurance analyst at insuranceQuotes.
The full report, along with additional tips and insights on how to save
on auto insurance, is available at http://www.insurancequotes.com/auto/insurance-deductible-savings-11017.
insuranceQuotes commissioned Quadrant Information Services to
calculate rates using data from the largest carriers (representing
60-70% of market share) in each U.S. state and the District of Columbia.
Jacob Streiter, 646.695.7047