Here’s a little car insurance industry secret especially for you higher-risk drivers:

When you pay extra money to get a rock-bottom deductible, that works for the insurance company. Not for you.

The smart play for most people is this: Buy a car insurance policy with the highest deductible you can afford. 

Here’s why:

When you pay premiums, only part of your money actually buys insurance insurance protection for you. The rest of it pays marketing costs, overhead, and a commission to the agency and salesperson who sold you the policy.

Now, the lower your deductible, the higher the premium – all other things being equal. And the higher the premium, the bigger the commission to the middleman.

Something’s got to give: The lower your deductible, the less actual insurance protection a dollar of premium can buy.

Don’t get me wrong: We love earning commissions! But I want our customers to get the best possible financial protection for every dollar they spend.

I know lots of agents are out there trying to sell you lower and lower deductibles. But they’re looking at insurance through the wrong end of the telescope.

Trust me, folks: There’s a better way.


1. Lower your deductible.

Instead of going for the lowest possible deductible, look at policy from a highly-rated company with the highest deductible you can afford.

You’ll get a lower premium.

Instead of spending the difference, take some of your premium savings from the higher deductible and buy better protection against the risks that really can financially hurt you.

Paying a $1000 deductible after an accident instead of a $500 deductible might make you wince. But it’s not going to ruin your life! It’s not going to cost you your home, destroy your credit for years, and force you into bankruptcy.

But being underinsured because you’re only carrying the bare minimum liability coverage in your state sure can!


2. Improve your coverage – and reduce your risk.

So instead of spending an extra $X per month to buy deductible that’s lower by just $500 or $1000 dollars, here’s what I’d recommend:

  • Take some of the amount you save and buy many thousands more in liability protection. Enough to seriously protect your home, savings, and entire net worth.
  • Take some the amount you save, and buy many thousands more in property damage protection.
  • Take some of the amount you save, and buy many thousands more in coverage for medical care for you or your loved ones if you or a passenger is injured in an accident.
  • Take some of the amount you save, and buy many thousands more in additional protection against uninsured motorists. There are lots of them out there.

Precisely how you structure your policy is something you should discuss in detail with your agent. But understand this: When your deductible is unnecessarily high, your premium is buying a lot less of this in


3. Capture and harvest your savings.

Next, take any savings left over, and add it to a savings account every month. Keep adding that money until you have the next higher available deductible sitting in the bank. As soon as you do, call us and get a policy with an even higher deductible.

That gives you a chance to use the same premium dollars to buy even more insurance, contribute to your savings cushion, or both!

Every time you “level up” to the next higher available deductible, you’ll accelerate your plan!

Then when your SR22 period ends, some time elapses since you got in trouble, and your rates start going back to normal, you can get some fresh quotes, get a better rate, and accelerate your plan even more!

Want to know more? Here’s a step-by-step breakdown on how to put this concept to work:

4. Don’t overdo it.

Now, don’t get carried away and buy a policy with a bigger deductible than you can handle. That can cause problems, too, if you have an accident: If you need your car repaired or replaced, you’ll need to pay the deductible out of pocket before you get any coverage. If you don’t have it, you could be without your car for a while.

If you can’t get to work without your car, that could be a very big problem. So while you want the highest deductible you can afford, you don’t want a deductible that’s higher than that! You should be confident that if you are involved in a car accident, that you will be able to get back on the road in a jiffy.

So be sure to consider your entire financial situation when you shop for an SR22 car insurance policy. Remember these three vital principles of insurance:

  • Don’t overpay for a low deductible. There are better uses for those premium dollars.
  • Don’t go underinsured on the big things. Focus your insurance protection on big risks, not small ones.
  • Don’t take on risks you can’t afford to lose. That’s what the insurance company is for!


5. Get a fresh quote today.

See how much you can save! Many times, we can save customers significant premium, meaningfully improve their protection, or both – simply by shopping their application to a lot of different quality carriers, and by increasing the deductible to a still-affordable amount.

Just click here and fill out the form. 

Or call us now at (855) 438-7353 and ask to speak to an agent!

See you on the road!

Steve “Mr. Insurance” Ludwig


More: Car Insurance Deductibles: Advantages and Disadvantages