Aside from driving safely, you can take additional steps to lower your insurance premiums. As stated earlier, we can customize a plan to suit your current financial situation. Illinois requires everyone to carry a minimum amount of liability coverage. Therefore, you can lower your liability coverage to save money on monthly premiums.
Choosing higher deductibles can save you money on your premium. However, your deductible must be satisfied before your policy pays out. For example, if you have a $500 deductible, you must cover the first $500 in damages before the insurance pays out. Therefore, if your accident resulted in $5,000 in damages, the insurance pays you $4,500, and you must pay the rest to cover repairs and restore the property.
Of course, choosing a higher deductible exposes you to more financial risk, but you can save hundreds of dollars a year in premiums. We recommend you determine how much you can afford to pay if you get in an accident and keep your deductible within that range.
Also, you can adjust the amount of property and medical coverage you carry to lower your premiums. For example, we allow you to select different coverage amounts for yourself and those in your vehicle, the amount paid to other motorists and their passengers should you be at fault, and the amount paid for damage to fences, homes, and other property should you damage physical items in an accident.
You can lower your insurance premium by purchasing an older vehicle versus a new one. New cars cost more to insure because they cost more to replace. Some people want that brand new sports car but find they can’t afford the high insurance premium. We recommend you shop for insurance before you purchase a vehicle to help you build a budget.