June 1st, 2015
Raising the deductible on your 16 percent nationally. Using that average insurance premium of $978, this increase in deductible could save home owners $150 a year.
These savings do come with some points for consumers to consider. First, a higher deductible would require you to pay more out of pocket before the coverage kicks in if something happened to your home. It's important for those looking to make this switch to have enough money in their savings to cover the full cost of the deductible.
Secondly, the overall savings that come with increasing your deductible can vary by the state you live in. For example, home owners in North Carolina saved 41 percent annually, while those in Indiana only saved 6 percent. The smaller amount of savings may not justify the financial risk of a higher deductible.
Lastly, it's important for consumers to consider the likelihood of filing a claim if their deductible is already higher. For many, filing a claim of any amount is less likely because it will increase their premium. A completely separate 2014 study by insuranceQuotes.com found that any claim, even if it's denied, can push up a home owner's premium by an average of 9 percent per year.
While raising the deductible on your home can lead to more savings annually, there are risks involved that should be considered. For a more detailed explanation on the benefits and risks involved with this change, talk to your insurance provider.
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