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If you increase your deductible you are therefore retaining more of the risk upon yourself and therefore the insurance company will reduce your premiums.
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∙ 9y ago
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What happens to an insurance premium when a deductible is lowered?
If a deductible is lowered the premium usually goes up
What usually happens to the amount of the premium if the deductible is lower compared to a policy with a higher deductible?
The premium will generally increase.
What happens to an auto insurance premium when a deductible is lowered?
Depending on your driving record, there may be little change in your rate, however when you do utilize your insurer for a claim, you'll pay less out-of-pocket. If that is the only thing changing, decreasing the deductible will increase the premium. They have other expenses to service your policy, so the calculation isn't this simple, but if the insurance company's statistics predict you will submit 1 claim for $1000 damage every ten years, theoreticly they could give you free insurance if you selected a $1000 deductible since they would expect no payouts. If you lowered the deductible to $500, then they would expect to pay $500 sometime in the next ten years and would want a premium of $50 a year. If a deductible is lowered the premium usually goes up
What happens to an insurance premium when a deductible is increased?
Your premium usually will go down a couple of dollars if you raise the deductible. EX. My deductible was $500 for collision and I changed it to $250. My premium went up $24 every six months. So basically your not going to save that much by increasing your deductible. Unless you have a very bad driving record.
A higher deductible will usually mean a lower premium?
yes a higher deductible means a lower premium.
What is a premium for auto insurance?
Your premium is pretty much your monthly bill, after deciding what type of deductible you plan on choosing. The higher deductible the lower your premium will be.
If you have an accident before the deductible is lowered but the claim is not filed until after which deductible applies?
The deductible at the time of the accident not the time of claim.
Difference between a deductible and a premium?
A premium is the amount of money you pay the auto/health insurance company monthly, quarterly, or biannually whether or not you get in an accident or go to the hospital. The higher your premium the lower your deductible, and the lower your premium the higher your deductible. A deductible is the amount of money after you get in a car accident or visit the hospital before your insurance company pays anything. After you have met your deductible the insurance company covers the rest of the expenses.
What is the difference between deductible and premium?
The premium is what you pay for the policy. The deductible is what the insurance company will not pay for what is covered. For example you buy a car policy for collision. You pay the premium of $50. If you crash the car, the company will not pay any thing less than the deductible. If the deductible was $1000 and you sustained $1500 damage, the company would pay you $500. If the damage was less than the deductible, you get nothing.
Which of these will not cause your insurance premium to be higher?
Having a high deductible will not cause your insurance premium to be higher.
The age to rent a car without paying a premium should be lowered to 21.?
The age to rent a car without paying a premium should be lowered to 21.
What should your Deductible for car insurance be?
Well the higher your deductible, the lower your insurance premium will be. However, your deductible should be something you can afford in case of a loss.
