When it comes to your auto insurance deductibles, the average is $250-$500, but many people carry $100 and many others carry $1,000 deductible.

Here’s the deal:

If you want to reduce your monthly premium and you are a good saver, have strong monthly income (after bills are paid) and can afford a higher deductible, then raise your deductible to the amount you feel you can easily pay at moment’s notice. Increasing your deductible by 2 times can often save you 30-40% on your monthly premiums depending on your auto insurance carrier. Before you do so, take into consideration your past driving record and claim activity. If you are a great driver and haven’t had an accident in years, you will be more comfortable increasing your deductible from $500 to $1,000 as an example. If you tend to get in an accident every few years and are an average driver, you may want to keep your deductible lower, again unless you can easily afford that amount at time of an accident.

In my experience, its silly to carry a low deductible and overpay for insurance every month of every year if you haven’t been in an accident in years and you have the monthly income and savings to absorb a $1,000 hit at moments notice in the event you do have an accident.

Remember, there is comprehensive deductible and collision deductible.

The comprehensive deductible is if something happens to your car that is not your fault (someone keys your car, theft, vandalism, riot damage, hurricane, falling objects, etc.). Basically non-collision events as described.

The collision deductible is for when you hit another car. So again you want to consider your driving record to date. If you are a very safe driver and have a great driving record, increasing your deductible will save you a lot of money.

Young drivers is where you are going to want to have a higher deductible as this is only way to reduce premium. Young drivers are expensive because the chance of an accident is so high in the 16-21 age range. Again, just be sure you have that deductible set aside for the possibility of that accident if you have a young driver in family or you are the young driver.

Timothy Feuling is a 17-year insurance veteran for Feuling Insurance. If you are sick of overpaying for home/auto/life/commercial/professional liability, call Timothy before you renew. You can also switch mid-policy – why wouldn’t you if you are going to save a few hundred dollars a year that you can invest or spend elsewhere. Timothy has access to dozens of insurance companies as an insurance broker, so your policy will be shopped with multiple companies to find the absolute lowest rate with a high quality company that has a record of exceptional claim service and stability. You can reach Timothy by email at Tim@CallTimToday.com or phone/text at 1-858-750-9176. Timothy can meet with you in person to discuss your needs or do everything by phone/email. Your choice.