Raising Car Insurance Deductibles Can Save 28%, Depending on Where You Live
Drivers in the Dakotas, Massachusetts, Wyoming and Kansas Come Out on Top
San Francisco (January 13, 2016) – Americans can save an average 9% on their car insurance premium by increasing their deductible from $500 to $1,000, according to a new report by insuranceQuotes. Increasing the deductible to $2,000 can save drivers an average of 15% nationwide, with South Dakota enjoying a whopping 28% savings.
How much money drivers save varies widely by state. The largest savings rate is in Massachusetts, where the average jumps to 17% (down from 19% in 2014) when deductibles are increased from $500 to $1,000. That puts about $170 back into drivers’ wallets each year.
Other states that offer big savings for drivers who opt for larger deductibles are South Dakota (14%), Wyoming (13%), Kansas (13%) and North Dakota (12%).
The smallest savings are seen for drivers in Michigan (4%), Florida (4%), Louisiana (6%), North Carolina (6%) and Nevada (6%).
“Since savings rates and amounts vary so much from state to state, consumers shouldn’t assume that raising your car insurance deductible will always pay off,” says Laura Adams, senior analyst at insuranceQuotes. “In some states, you can save hundreds of dollars each year by choosing higher deductibles, but in others, the benefit is too small to take on the extra risk. This is a good reminder why doing your homework and getting customized insurance quotes is important for your financial health.”
Click here to read the full report, including the average premium savings in all 50 states and the District of Columbia.
About the report:
insuranceQuotes and Quadrant Information Services calculated these rates using the data from the largest carriers in each state. The averages are based on a married and employed 45-year-old female who drives 12,000 miles per year with policy limits of $100,000 for injury liability for one person and $300,000 for all injuries. The hypothetical driver has a clean driving record and good credit.
insuranceQuotes provides consumers with a free, easy way to shop for and compare auto, home, health, life and business insurance quotes online.