A Quick And Easy Way To Find Some Hidden Money To Invest
by KAREN M
Don't you just love it when you find some money you forgot about in your jacket or in your pants. It was money that was always there but you didn't know it existed. Everyone loves a windfall when it comes to easy cash. Here is a quick and easy way to find some hidden money to invest.
Are you always looking for ways to find more money to invest or wishing you had a few more dollars in your pocket? Do a quick and easy analysis of your auto insurance deductible to premium difference and you might discover an untapped source of money that you can drop into a high interest savings account, a money market savings account, add to a mutual fund account or just spend on yourself.
When purchasing auto insurance, an agent or broker will usually ask you what deductible you want. A deductible is the amount of money you will pay when your insurance is assessed with a claim. Typically, your auto insurance company will pick up the balance of the claim for you after your deductible is met.
Auto insurance deductibles range from $250 to $1000. Many times the agent or broker will lead you to take a lower deductible under the pretense that you will have smaller amount of out of pocket expenses in the event of a claim. Of course the lower your deductible the higher your insurance premiums. The reverse is also true, the higher your deductible the lower your premiums. Taking advantage of the inverse relationship can yield you additional money to invest or to have in your pocket for an emergency or extra play money.
There can be a sizable savings when raising your deductible from $250 to $500 and again from $500 to $1000. The savings can range from 15% to 40% of the premium. Depending on your policy and which company you have purchased your auto insurance through there can be a lot of cash to have in your hands.
But does it make sense to raise your deductible just to have a few extra dollars. I like to make decisions based on the positive or negative impact a decision will make on my finances. To determine the true cost savings of raising your deductible, let's take a look at how much your premium will change when you change your deductible.
Ask an insurance agent to quote you the annual premium on a policy that places the coverage you need and tell the agent you want a $250 deductible. Also, ask the agent or broker to quote you the exact same policy with a $500 and with a $1000 deductible. With each deductible the premium will change. If the difference between the premium is higher than the difference of the deductible when you go from $250 to $500 or from $500 to $1000 then you should take the higher deductible and invest the difference into some interest bearing or money making account.
It is as simple as that. Just take a few quick minutes to talk to an auto insurance agent or broker who has your best interests in mind, he or she will help you analyze your deductible to premium difference. I personally have used this idea to save money on my auto insurance and I have invested the difference. This is as quick and easy as it gets. You too can find hidden money to invest. To find a top auto insurance company who can help you evaluate your insurance and find some money to invest click this link: best auto insurance companies
