Deductibles and premiums - what's the real deal?

"Like, you're basically betting on yourself not getting into an accident, lol."

Haha, exactly how I see it too... I've considered going higher deductible before, but then I think about that one time a deer jumped out of nowhere on a road trip. Is the monthly saving really worth the stress? Still undecided tbh.

"Is the monthly saving really worth the stress? Still undecided tbh."

Yeah, that's always the tricky part. It comes down to your comfort level with risk, honestly. I've seen people save a decent chunk monthly going higher deductible, but then one unexpected incident wipes out years of savings... Have you looked into how much you'd actually save per year versus what you'd pay out-of-pocket if something happened? Curious if anyone's done the math on their own situation.

Went with a higher deductible last year thinking we'd save some cash... then my kid backed into a mailbox. Repair wasn't huge, but it ate up most of what we'd saved. Still debating if it's worth it tbh.

Title: Tried High Deductible, Not Worth It for Me

Did the math on this last year and went for a higher deductible to lower my monthly payments. Here's what happened step-by-step:

1. Premium dropped by about $25/month, seemed decent enough.
2. Three months in, clipped a curb in a parking lot - completely my fault, tire and rim damage.
3. Repair bill was around $500, deductible was $1000, so insurance didn't help at all.
4. Out-of-pocket expense basically wiped out the savings I'd made on the lower premium for the year.

Bottom line, if you're a careful driver or have extra cash set aside, higher deductibles can save you money. But if you're accident-prone (like me) or just unlucky, it's probably smarter to pay a bit more each month and avoid getting slammed with big bills when something inevitably goes sideways. Lesson learned the hard way, I guess...

"But if you're accident-prone (like me) or just unlucky, it's probably smarter to pay a bit more each month..."

Haha, totally feel you on that - one pothole last year set me back nearly $700. Makes me wonder, is anyone actually "careful" enough for high deductibles to pay off long-term...?

Honestly, I'm starting to think "careful driver" is just a myth insurance companies invented to make us feel guilty, lol. I mean, I try my best - hands at ten and two, mirrors checked, playlist queued up BEFORE leaving the driveway - but life still finds a way to throw curveballs. Last month, I swerved to miss someone's runaway recycling bin and clipped the curb instead... goodbye tire alignment, hello surprise bill. 😅

So yeah, even if you're super cautious, random stuff happens. Maybe high deductibles work for some people who have insanely good luck or live in pothole-free paradise towns (wherever those are), but for most of us mere mortals...? Seems like paying a little extra monthly might actually be cheaper in the long run. Or am I just rationalizing my own clumsiness here? 😂

"Seems like paying a little extra monthly might actually be cheaper in the long run."

I get your point, but have you considered setting aside the difference you'd pay monthly into a small emergency fund instead? Might save you more overall... especially for those random curb-hopping moments, haha.

Good point about the emergency fund, but honestly, most people I've worked with aren't disciplined enough to actually set that money aside consistently. If you're the type who can stash away the difference each month without dipping into it for pizza night or impulse Amazon buys, then yeah, your strategy makes sense. But realistically, a slightly higher premium with a lower deductible often saves folks from scrambling when life throws those unexpected curveballs...or curbs, lol.

You're spot on about discipline being a real hurdle - seen it plenty of times. Sure, in theory, setting aside cash for a high deductible sounds great, but I've dealt with enough claims to know that life rarely follows our neat little plans. A fender bender here, a cracked windshield there...it adds up quickly. For most folks, paying a bit extra monthly to dodge that sudden financial hit is worth the peace of mind. Better safe than sorry, especially if you're prone to dipping into savings for pizza nights (guilty as charged...).

Totally agree, especially as someone who's seen premiums spike firsthand. One speeding ticket or minor accident and suddenly that "affordable" high deductible isn't looking so smart... learned that the hard way myself. Peace of mind is underrated.

"Peace of mind is underrated."

Couldn't agree more - I learned my lesson years ago when I opted for a high deductible to save a few bucks. Thought I was being smart until a deer jumped out on a dark road one night. Suddenly, that "smart" choice felt pretty foolish when I had to fork out nearly two grand before insurance kicked in. Makes me wonder, though...is there ever really a sweet spot between deductible cost and premium savings, or are we all just gambling either way?

I'm new to all this insurance stuff, and honestly, it feels like picking between "pay now" or "maybe pay a lot later." Kinda like choosing whether to carry an umbrella on a cloudy day - do I risk getting soaked or lug it around for nothing?

Honestly, insurance feels more like gambling than weather forecasting to me. I've always been a "roll the dice" kinda driver - had a few bumps and scrapes along the way (okay, maybe more than a few) - and trust me, when you're high-risk, those premiums sting. But here's the thing: when I had my first fender bender, I chose a low premium/high deductible combo thinking I'd save money upfront. Then BAM... suddenly I'm shelling out a grand because apparently bumpers are made of gold these days.

Now I just bite the bullet and pay higher premiums. Hurts every month, but at least I won't get blindsided again. It's basically like carrying that umbrella you mentioned - yeah, it's annoying to lug around, but if your luck's anything like mine, you're gonna get soaked eventually.

Haha, I feel your pain - been there, done that, got the overpriced bumper sticker. But honestly, paying a bit more upfront for lower deductibles is like buying peace of mind. Sure, it stings every month, but when life inevitably throws you a curveball (or a rogue shopping cart...), you're not scrambling to find cash. Learned that lesson after my own "gold-plated" bumper incident. Now I just accept the monthly pinch as the price of sanity.

Fair points, but honestly...

- Lower deductibles make sense for daily drivers, sure.
- But with my classic, I barely let a raindrop touch it, let alone a rogue shopping cart.
- Paying extra monthly feels like betting against myself - though your bumper story does give me pause, haha.

Fair points all around. I totally get the hesitation about paying extra monthly - especially on a car that's practically bubble-wrapped in your garage. I've been down this road myself, and honestly, it comes down to how comfortable you are with risk.

I've had my '68 Mustang for years now, and like you, it's more of a weekend cruiser than anything else. I used to think exactly the same way - why pay more when the car rarely leaves my sight, right? But then a buddy of mine had his classic clipped by someone backing out at a local meet-up. Nothing major, just a fender scrape, but the repair ended up costing way more than either of us expected (matching vintage paint isn't cheap, turns out). It made me rethink things a bit.

After crunching numbers, I decided on a middle-ground deductible - not crazy low, but not sky-high either. It felt like a decent compromise between monthly cost and peace of mind. Plus, I figured if something did happen, I'd rather not be stuck footing the entire bill. Yeah, it still feels a little like betting against myself, but at least it's a bet I'm comfortable with.

Also worth considering: some classic car insurers offer agreed-value policies, which can make the deductible decision easier since you know exactly what you'll get if the worst happens. Might be worth looking into if you haven't already.

Anyway, your point about daily drivers is spot-on - low deductibles make perfect sense there since they're constantly exposed to life's little hazards. But for classics, it's definitely more nuanced. Guess it ultimately boils down to how much you're willing to gamble on your own luck...

Had a similar wake-up call myself. My old Camaro barely left the driveway, figured insurance was just money down the drain...until a tree branch decided otherwise. Middle-ground deductible saved my wallet big-time. Lesson learned: life's unpredictable, even for garage queens.

I get your point about life's unpredictability, but honestly, isn't insurance sometimes just a numbers game? I mean, sure, your Camaro got unlucky with that tree branch, but how often does something like that really happen? I've had cars parked outside for years without a scratch - maybe I'm just lucky or maybe the odds aren't as scary as insurers want us to think.

Personally, I've always leaned toward higher deductibles and lower premiums. It feels like I'm betting on myself to avoid trouble rather than paying extra every month for something that might never happen. Of course, there's always that nagging "what if," but isn't it smarter to stash away the savings from lower premiums into an emergency fund instead? That way, if something does go sideways, you've got cash ready without relying entirely on insurance payouts.

Not saying your approach is wrong - just wondering if middle-ground deductibles are really the sweet spot or just another way insurers keep us comfortably paying more than we need to...

"isn't it smarter to stash away the savings from lower premiums into an emergency fund instead?"

Yeah, I get the logic behind this, but as someone who's just getting into insurance, isn't the whole point to avoid having to dip into your savings at all? Like, what if something major happens before you've built up enough of an emergency fund? I dunno, feels like a gamble either way...maybe middle-ground deductibles aren't just insurer tricks but actually a decent compromise.