Title: HOW DO YOU DECIDE ON THE RIGHT DEDUCTIBLE FOR YOUR INSURANCE?
Curious—do you folks look at how much you’d actually save per year by raising your deductible, or do you just go with what feels right? Sometimes the difference in premium isn’t as big as people think...
I’ve wondered about this too, especially since my driving record isn’t exactly spotless. I get tempted by the lower premiums with a higher deductible, but then I remember how often I’ve had to file claims in the past. For me, it’s not just about “would it wreck your finances or just be an annoyance?”—it’s more like, how many times am I realistically going to have to pay that deductible in a year? If it’s likely to happen more than once, those savings disappear fast.
Has anyone actually tracked how often they use their insurance vs. what they save on premiums? I feel like for people who rarely have accidents, the math might work out differently than for someone who’s had a few fender benders (guilty). Do you guys factor in your own accident history when picking a deductible, or is it all about what you can afford if something goes wrong?
I’m also curious if anyone’s ever regretted going with a super high deductible after an accident. Like, did the premium savings make up for the pain of paying out of pocket?
- I always tell folks to run the numbers first. Sometimes bumping your deductible from $500 to $1,000 only saves you like $80 a year—barely worth it if you’ve had a couple claims before.
- Your accident history matters a lot. If you’ve filed more than one claim in the last few years, a high deductible can end up costing you more than you save.
- I’ve seen people regret going too high, especially after a minor accident where they suddenly had to cough up $1,500 they didn’t really have set aside.
- My rule of thumb: pick the highest deductible you could comfortably pay out of pocket tomorrow. If that number makes you sweat, it’s probably too high.
- Don’t forget, sometimes the premium difference is so small it’s not worth the risk. Always check the actual numbers before deciding.
Totally agree on running the numbers. I once bumped my deductible to $1,000 thinking I’d save a ton, but when my windshield cracked a year later, the savings didn’t even cover half the repair. Now I just pick what I know I can pay without stressing.
I hear you on that one. I’ve gone back and forth on my deductible a couple times, and honestly, I’m still not convinced there’s a “right” answer for everyone. I used to think higher deductible = smarter, because hey, lower monthly payments, right? But then I had a minor fender bender (literally just a parking lot scrape) and realized the out-of-pocket hit felt way worse than the few bucks I’d saved each month.
Now I just look at my emergency fund and ask myself, “Would I be annoyed, or would I be panicking if I had to pay this tomorrow?” If it’s panic, I drop the deductible. If it’s just annoying, I might risk it. I know some people say you should always go high if you’re a careful driver, but I don’t totally buy that. Accidents aren’t always your fault. Hail, random road debris, some kid with a shopping cart... stuff happens.
One thing I do is check every year when my policy renews. Sometimes the price difference between a $500 and $1,000 deductible is barely anything, and sometimes it’s a lot. Depends on the company, I guess. I also factor in how old my car is—if it’s not worth much, I’m not going to pay extra for a low deductible.
Anyway, I’m with you—peace of mind is worth something too. I’d rather pay a little more each month than stress about a big bill popping up out of nowhere.
Totally get where you’re coming from. I drive a ton for work, so I used to think, “I’m careful, I’ll just go high and save cash.” Then a rock cracked my windshield on the highway and I had to cough up $1,000 before insurance even kicked in. That stung way more than the $10/month I’d saved.
Honestly, I don’t trust my luck enough to gamble with a high deductible anymore. Too many random things can happen, even if you’re the world’s best driver. Plus, with how much time I spend on the road, odds are something dumb will happen eventually—like that time a bird flew into my side mirror (don’t ask).
I check rates every year too, but if the difference is small, I just stick with the lower deductible now. Peace of mind is worth it for me. Not trying to have a meltdown over a surprise bill because some squirrel decided to play chicken with my car.
