For me, peace of mind is worth a few extra bucks a month. Why gamble with your own money if you don’t have to?
That’s pretty much the crux of it for me, too. I’ll admit, I used to be convinced I’d save “so much” in the long run with a higher deductible—until reality hit. Once had a fender bender (wasn’t even my fault; someone backed into me at the grocery store) and my deductible basically wiped out any savings from the lower premium. It felt like a lose-lose.
But I do wonder sometimes if there’s a sweet spot. Like, is there such a thing as being too cautious? I’ve got a friend who’s almost never had an accident, parks in his own garage, barely drives outside his neighborhood... he swears by his $1,000 deductible and says he’s never had to use it. Meanwhile, I park on the street, drive through city traffic daily, and have kids who think my car is some sort of jungle gym. Maybe it’s just about knowing your own risk tolerance?
I get what you’re saying about the rainy day fund. If you’ve got cash set aside, maybe it’s not such a big deal to take on more risk. But honestly, most people I know don’t really keep that emergency fund topped up (or they raid it for stuff like vacations and then “forget” to refill it). For those folks, that lower deductible can be a lifesaver when something unexpected happens.
Not to mention, insurance is supposed to be about reducing stress—not adding to it. The idea of having to shell out a big chunk of cash just to get my car fixed stresses me out way more than paying an extra $10 or $15 a month. Maybe I’m just risk-averse... or maybe I’ve just seen too many “what are the odds?” moments go sideways.
Curious if anyone has ever actually done the math and come out ahead with a super high deductible? Or is it just one of those things that sounds good until life throws you a curveball?
I get where you’re coming from, but I actually went the high-deductible route a couple years ago and, weirdly enough, it’s worked out for me so far. I did the math and realized if I went three years without a claim, I’d save a few hundred bucks—even after factoring in the risk. Granted, I don’t have kids and my car lives in a garage most nights, so maybe I’m just tempting fate. Still, sometimes it feels like paying more for “peace of mind” is just giving the insurance company extra cash for nothing... unless you’re really unlucky.
I get what you mean about “peace of mind” maybe being overrated sometimes. But do you ever worry about that one-off accident or something totally out of your control? I keep wondering if I’d regret skimping on coverage the one time I actually need it...
HOW DO YOU DECIDE ON THE RIGHT DEDUCTIBLE FOR YOUR INSURANCE?
I hear you on the “what if” anxiety. I used to roll my eyes at all the worst-case-scenario talk, but then my kid managed to back the minivan into a mailbox—our own mailbox, mind you—while “helping” me unload groceries. That was a fun one to explain to the neighbors. I had just switched to a higher deductible to save a few bucks each month, thinking, “What’s the worst that could happen?” Turns out, the worst is a dented sliding door and a bruised ego.
Honestly, I still go back and forth. Part of me wants to gamble and keep the deductible high, because most years nothing happens except the usual coffee spills and mystery crumbs. But then I remember how fast those repair bills add up, especially with kids and their creative approach to car interiors. Have you ever tried getting melted crayon out of seat fabric? I wouldn’t wish it on my worst enemy.
But yeah, I do worry about that one-off disaster. Like, what if a tree branch falls or someone sideswipes me in the school parking lot? It’s always the stuff you can’t predict that gets you. I guess for me, it comes down to how much of a surprise bill I could actually handle without having to eat ramen for a month. If it’s gonna keep me up at night, maybe the peace of mind is worth a few extra bucks.
Still, every time I pay the premium, I wonder if I’m just funding my own paranoia. Anyone else feel like insurance is basically betting against yourself?
HOW DO YOU DECIDE ON THE RIGHT DEDUCTIBLE FOR YOUR INSURANCE?
I get what you mean about the “betting against yourself” feeling. I drive a car that costs more than my first apartment, so I don’t really have the luxury of rolling the dice with a high deductible. One scratch and it’s a four-figure repair bill, easy. But then again, the premiums are already sky-high, so sometimes I wonder if I’m just throwing money away for “peace of mind.”
Here’s what I keep asking myself: is it worth paying extra every month just to avoid a big hit once in a blue moon? Or am I better off stashing that difference in a savings account and taking my chances? Honestly, has anyone here actually come out ahead by going low or high on the deductible over several years? Or is it just luck of the draw and you pay either way?
