Well, for one, it shouldn’t be based on the national average. Rather, it should be based on your individual needs.
If you have your deductible increased to $1,000, you need to set aside $1,000 for emergencies. Thus, you can cover your deductible when necessary, and you'll also have lower auto insurance premiums.
Before signing up to a higher deductible, make sure that the benefit outweighs the risk. If the deductible decreases your annual premium by $50, that means you have to go a decade without accidents for you to break even --- which is not a great deal, by the way. But if increasing your deductible reduces your annual premium by $150, you’ll only have to go about three years without accidents, which makes more sense.
Which type of coverage should you drop?
You don’t need all types of coverage for your car. Know which of them to drop or keep depending on your situation.
Among the types you shouldn’t drop is liability coverage. It pays for damaged property and medical bills when you’re at fault. Liability coverage is also considered to be among the best deals in the insurance industry. So make sure that you don’t skimp on liability coverage; having too little liability coverage could affect your finances for decades.
If you own an older car, you might want to consider dropping collision coverage. This type of coverage pays for the damage repairs due to accidents. Dropping it would save you more money.
One thing you should consider before dropping collision coverage is that if your car is totaled and you’re at fault, your insurer won’t give you money to buy a new one. Thus, you need to save enough money to replace your car before you make changes to your policy.
Ask an Agent
There are a lot of things that you should consider to know whether you have the “right amount” of auto insurance and we’ve really only just scratched the surface here. The best thing you should do is to consult an agent. Here at Robert Nichols Insurance Agency, we are committed to giving you the best car insurance coverage that suits your needs and budget. Feel free to talk to one of our agents, call (561) 406-6153 or visit us at our office today and get a free quote!