Many people ask me during or after I handle their accident case, how can I reduce my auto insurance premiums without going unprotected? I advise them to always keep their FULL tort coverage which is critical, no matter what it costs! Also, you can see a big drop in your premium by increasing your deductible. Most people have a $500 deductible but some have as low as $250 in PA.
If you take $1000 and place it in a savings account you WILL NOT touch, which requires self discipline for some people, go ahead and increase your deductible to $1000. Ask your agent how much money that will save you over a year. You will be surprised. However, if you do not think you can leave the $1000 in a saving account just in case you should become responsible for your deductible, don't do this unless you have a decent income and will not have difficulty paying $1000 on short notice.
When would you have to use this money? If you are in an accident that is your fault and your car is damaged, you will need to have your own insurance pay for the damage subject to your deductible. This means when you take the car to the auto body shop, the shop will not release the car to you unless you pay the $1000!
For more information on Car Accidents visit the Worthington Law Group website.