We all have to pay our insurance bill every month – it’s certainly not the most pleasant bill to pay, but we can all agree it’s necessary.

What makes paying this particular bill more unpleasant than any other bill we pay is that our insurance bill consists of money we pay out that we do not see a direct and immediate benefit from.  Other goods and/or services we routinely pay for such as our groceries, electricity, mortgage or rent, we get a direct and immediate benefit from.

We all know that the best way to keep our insurance costs down is to have as few claims as possible for as long as possible.  Another simple way to lower your insurance bill is to raise your deductible.  As an insurance agent this is a conversation I inevitably have with all of my clients at some point in time.  So, the question is: higher deductible and lower premium, or lower deductible higher premium?

The purpose of insurance is to ensure that you will be restored financially given an accident or catastrophic event.  [Read more…]