Using a high deductible to cut costs

Shutterstock 63396169If you haven’t looked closely at your insurance deductibles, you could be missing an opportunity for savings. Whether it’s a trucking-related or personal policy, that front-end amount you pay on a claim can significantly affect your monthly premium.

For something as simple and low-risk as home insurance, you might be comfortable with the largest deductible and lowest premium.

Trucking can be more complicated, especially if you’re an independent. One bad wreck could mean you’ve got to cover cargo and damage deductibles, as well as costs such as downtime and legal fees. Make sure your overall protection, including your normal level of emergency cash for meeting deductibles, is such that finances will not prevent you from getting back on the road as soon as possible after an accident.

Here are other ways to save on insurance:

  • Bundle policies for a discount. If you haven’t already, move trucking-related policies to one provider if the price is right. Likewise, home and auto.
  • Review your truck value. If it’s depreciated enough since your last appraisal, it might be time to change coverage.
  • Review your operation. If freight, lanes or type of trailer have changed in significant ways, you might need more or less coverage.
  • See if you qualify for a discount. Accident-free operation or other factors might merit a lower premium.
  • Shop around. Check competitive prices, especially if you bought insurance through your carrier because it was convenient at the time.