Money Monday: Cutting your insurance costs

There has been so much talk about the high insurance rates we pay here in Michigan, especially for car insurance. Legislators in Lansing and the Detroit mayor have ideas on how to cut our insurance costs, but there are some things you can do right now that might save some big money. Ray Moulden of Allstate Insurance in Oak Park explains deductibles, and what you can do to cut the cost of your insurance.

A deductible is the amount you agree to pay out-of-pocket if you make a claim covered by your car insurance policy. For example, if your deductible is $500 and the accident damage costs $1,500, you'll pay $500 and Allstate will pay the remaining $1,000.

A higher deductible can lower your monthly premium since you are assuming a larger portion of your risk, but figuring out the deductible that's right for you depends largely on the amount you think you can afford to pay out-of-pocket if you have an accident. There is no right or wrong decision when it comes to determining your deductible amount - only what works best for you.

Allstate has several auto insurance discounts based on how drivers choose to pay for their insurance:

• If you pay the entire premium upfront, you qualify for the full pay discount.
• If you would like to have your premium automatically withdrawn from your bank account, Allstate will apply an EZ Pay discount (depending on the type of policy you purchase).
• If you prefer to receive your Bill electronically instead of by mail with eBill, own a home, and have multiple lines of insurance with Allstate, you can qualify for the Preferred Package Discount.
• If you sign up for ePolicy to receive policy information electronically, you can qualify for eSmart discount.
• A teen driver may also qualify for a good student discount.

Click here to contact Ray Moulden.