Is there even a “right” answer, or is it just a matter of which risk gives you fewer gray hairs?
I always try to break it down step by step: First, I look at my emergency fund—could I actually cover the deductible tomorrow if I had to? Then, I check how much the premium drops if I bump the deductible up. Sometimes it’s barely anything, other times it’s a decent chunk. One year I went with a higher deductible thinking I'd save big... but then a hailstorm hit and wiped out any savings in one go. Has anyone else found that the math doesn’t always add up the way you expect?
Yeah, I’ve noticed that too. The “savings” from a higher deductible always look good on paper, but real life has a way of throwing curveballs. I tried the same thing—upped my deductible thinking I’d pocket the difference, but then my kid backed into a mailbox and suddenly I was out more than I’d saved all year. It’s almost like you’re gambling either way.
I get why people say to just pick what you can afford to pay out of pocket, but sometimes it feels like you’re just guessing how unlucky you’ll be. The premium difference isn’t always worth the stress, honestly. If the savings are tiny, I’d rather have peace of mind and not worry about scraping together cash if something happens. But yeah, the math never quite lines up with reality... insurance companies definitely know what they’re doing.
I’ve wrestled with this exact dilemma, especially since I’ve got a couple of older cars that aren’t exactly cheap to fix if something goes wrong. There was one year I bumped up my deductible thinking, “Hey, I drive carefully, what’s the worst that could happen?” Fast forward a few months, and I had a minor fender bender in my ‘72 Chevelle—nothing major, but the repair bill was way more than the premium savings. Ended up regretting that decision for months.
It’s tough because, like you said, you’re basically betting on your own luck. I get tempted by the lower premiums, but every time I do the math, I end up thinking about how much it would sting to shell out a big chunk all at once. For me, I’d rather pay a little more for peace of mind, especially with cars I care about. The stress just isn’t worth it if the difference in premiums isn’t significant. Insurance companies definitely have this figured out... they know most people will play it safe in the end.
HOW DO YOU DECIDE ON THE RIGHT DEDUCTIBLE FOR YOUR INSURANCE?
- Been on both sides of this, and honestly, there’s no perfect answer. I’ve seen people save a bunch with higher deductibles, but I’ve also seen folks get blindsided by repair bills that wiped out those savings in one go.
- Had a similar situation with my own daily driver a few years back. I bumped my deductible up to $1,000 thinking I’d pocket the extra cash each month. Then, out of nowhere, a rogue shopping cart (seriously) left me with a nasty dent and a $1,200 bill. The premium savings didn’t even come close to covering it. Felt like a genius until that happened...
- Here’s what I usually tell friends and family:
- If you’ve got enough set aside to comfortably cover the higher deductible at any time, it might make sense to go for it. But if paying that out of pocket would sting—or mess up your budget for months—it’s probably not worth the stress.
- For older or classic cars, parts and labor can get expensive fast. Even “minor” damage can add up, especially if you care about keeping things original.
- The difference in premiums between high and low deductibles isn’t always as much as people expect. Sometimes you’re only saving $10-15/month, which doesn’t feel worth the risk if you’d be sweating a big bill.
- Insurance companies definitely do their homework on this stuff. They know most people would rather pay a bit more for peace of mind than gamble with their savings.
- Personally, I’d rather skip an extra coffee or two each week and keep my deductible reasonable. The sleep is worth more than the small savings.
Not saying there’s one right answer, but yeah... sometimes “playing it safe” just feels better when you’re staring at a repair estimate that makes your eyes water.
I keep going back and forth on this. I drive a lot for work, so the odds of something happening just feel higher, you know? I tried bumping my deductible up once to save a few bucks, but then every time I parked somewhere sketchy or saw hail in the forecast, I’d get anxious about what it’d cost if something happened. Maybe I’m just risk-averse, but the peace of mind is worth more to me than the $12/month or whatever. Does anyone actually come out ahead with those high deductibles unless they never file a claim?
