Deductibles and premiums—what's the real deal?

Been on both sides of this—seen people gamble with high deductibles to save a few bucks each month, then totally regret it when something small but expensive happens. Here’s my take:

- The “it’ll never happen to me” crowd is always the first in my office with a deer vs. bumper story or a rogue rock through the windshield.
- Those monthly savings can look pretty sweet until you’re staring at a $1,000 bill for something dumb, like a parking lot scrape.
- On the flip side, if you’re driving an old beater and can actually afford to eat that deductible, sometimes it does make sense to take the risk.

I get wanting to save money, especially if you’re not filing claims every year. Still, I’ve watched people try to “wait out” repairs because they didn’t want to cough up the deductible... only for things to get worse (and more expensive). It’s not just about math—sometimes it’s about how much stress you wanna deal with if your luck runs out.

Guess it really comes down to how risk-averse you are and how much cushion you’ve got stashed away for those just-in-case moments.

I hear you on the “it’ll never happen to me” crowd—seen it play out more than once. Honestly, with what I pay for my car, there’s no way I’m gambling on a high deductible. One fender bender and the repair bill is already through the roof, even for something minor. I’d rather pay a bit more each month and not have to stress if someone dings my door at the grocery store.

I get that if you’re driving something older, it might make sense to risk it. But with newer or higher-end cars, those “small” repairs are never actually small. Even a cracked headlight can run you hundreds, sometimes more. I’d rather just hand over a lower deductible and get it fixed right away, no drama.

Curious—has anyone actually run the numbers on how much you really save with a higher deductible over, say, five years? I’ve always wondered if the monthly savings ever actually add up to more than what you’d pay out of pocket for one decent repair. Or is it just a psychological thing, feeling like you’re saving money until you get hit with a big bill?

Deductibles And Premiums—What's The Real Deal?

I’ve actually tried to crunch those numbers a couple times, and honestly, the savings with a higher deductible just never seemed worth it for me. Maybe if you go years without a single claim, it adds up, but with the way people park around here, I’m not betting on that. Had a friend with a newer BMW who thought he was being clever with a $1,500 deductible—first time someone sideswiped him, he was not laughing. The “peace of mind” factor is real, especially when even a minor scratch can cost more than a weekend getaway. I’d rather pay a bit more each month and not have to sweat every time I leave the car in a public lot.

That "peace of mind" angle really gets me thinking.

I’d rather pay a bit more each month and not have to sweat every time I leave the car in a public lot.

I totally get where you’re coming from. The peace of mind really is a big part of it for me too, especially with kids in the car and juggling errands. In my experience, even what seems like a “minor” fender bender can end up costing a surprising amount—last year, someone scraped my bumper in a parking lot and the repair estimate was almost $1,200. My deductible was $500, so I still had to pay out of pocket, but it didn’t wipe us out.

I guess it depends a lot on the car and the kind of damage, though. Sometimes little scratches or dents are under the deductible and you just eat the cost, but anything involving sensors or paint-matching gets expensive fast. Has anyone else noticed how quickly those costs add up now with all the tech in newer cars? I sometimes wonder if higher premiums are just the price of not stressing every time I park at the grocery store...