By: Ramu Garuda October. 29, 2018

Choosing an appropriate deductible amount can help homeowners save significantly on their annual insurance expenditure. Gavop recently analyzed the net savings earned from home insurance plans with higher ($2,500) and lower ($500) deductibles in Bloomington, Illinois. The study shows that homeowners in the city can save as much as $410 in total yearly spending by choosing the lower deductible plan. This citywide calculation is based on a hypothetical claim amount of $2,500. For a $500 deductible, homeowners in Bloomington pay a median yearly premium of $710 and incur a total of $1,210 in yearly expenditure. With a higher deductible of $2,500, these values are $620 and $1,620, respectively. These numbers are illustrated in the graph below.

A comparison of these numbers with statewide values reveals that Illinois homeowners opting for the lower deductible plan pay an average yearly premium of $910 and incur a yearly expenditure of $1,110. Those opting for the higher deductible plan pay an average premium of $770 and incur annual expenditure worth $970. The statewide net savings for the higher deductible plan are $140 for a hypothetical claim amount of $200.

 The Gavop study also analyzed home insurance premiums in nearby locations within a 50-mile radius of Bloomington. For a hypothetical claim amount of $1,500, homeowners of Tazewell County, near Bloomington, incur an annual expenditure of $1,150 for the lower deductible and $2,030 for the higher deductible. Thus, the net savings for them are $880. In Peoria, another neighboring place, the net savings are $20 more at $900 for the same claim amount ($1,500). The annual expenditure for the lower deductible plan here is $1,130. It is $2,030 for the higher deductible plan.

 Homeowners in both these places pay almost the same median insurance premiums. In Tazewell County, they pay $650 for the lower deductible and $530 for the higher deductible. In Peoria, the median insurance for the lower deductible is just $20 less at $630, and for the higher deductible, it is exactly the same, at $530.

 The table below calculates the net savings from home insurance for the two deductible plans against hypothetical claim amounts in 10 locations within a 50-mile radius of Bloomington, IL. In addition, it estimates the average yearly premium and the total yearly cost of insurance for the same locations.

		Low Deductible ($500)		High Deductible ($2,500)
Place	Example Claim Amount	Yearly Premium	Total Yearly Cost	Yearly Premium	Total Yearly Cost	Net Savings for High Deductible Plans
Illinois	$200	$910	$1,110	$770	$970	$140
McLean County, IL	$1,500	$680	$1,180	$590	$2,090	-$910
Bloomington, IL	$1,000	$710	$1,210	$620	$1,620	-$410
Tazewell County, IL	$1,500	$650	$1,150	$530	$2,030	-$880
Peoria, IL	$1,500	$630	$1,130	$530	$2,030	-$900
Greenview No. 6, IL	$1,000	$310	$810	$270	$1,270	-$460
Bellflower, IL	$700	$370	$870	$310	$1,010	-$140
Sand Prairie, IL	$700	$490	$990	$410	$1,110	-$120
Argenta, IL	$500	$350	$850	$280	$780	$70
East Lincoln, IL	$400	$520	$920	$460	$860	$60
Lyman, IL	$400	$310	$710	$250	$650	$60
Mount Pulaski, IL	$300	$520	$820	$430	$730	$90
Olio, IL	$200	$560	$760	$470	$670	$90

For more information on Bloomington, Illinois.  home insurance, click on this link

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