A survey by an Illinois-based auto insurance company found that more than 50 percent of Illinoisans do not know what an insurance deductible is. Low deductibles on vehicle insurance may be costing Illinoisans more money.
The company said the high cost to the consumer of low deductibles means three-quarters of policy holders in the state are paying too much on their car insurance premiums.
The survey shows that deductibles have not been adequately explained to the majority of Illinois auto insurance policyholders, the insurance company said.
A deductible is a designated amount the insured must pay in the event of a loss, before the insurer covers any remaining damages over what the policyholder must pay.
Most consumers do not ask about deductibles when purchasing a policy, but it is an insurance provider's duty to educate the consumer of the pros and cons of any of the insurance services they are providing, the company said.
With a higher deductible, consumers can save with lower premiums and cover the cost of minor claims themselves.
Get matched with auto insurance companies FREE at RateMarketplace.com.