I used to just pick the lowest deductible because I figured I'd rather pay a little extra monthly than get hit with a big bill after an accident. But after a few years accident-free (knock on wood...), I realized I was basically throwing money away. Now I check every year when renewal comes up, do a quick calculation to see if the higher deductible savings outweigh the risk. Usually it does, but I still keep it within a range I know I can handle if something happens.
Good points, but remember it's not just about accident frequency—it's also about your comfort level with risk. If you're someone who'd lose sleep worrying about a sudden $1,000 expense, the lower deductible might still be worth the peace of mind... even if it costs a bit more monthly.
Totally agree with the comfort-level point. Another thing I'd add is to actually sit down and crunch some numbers. Here's how I usually do it: first, I look at the difference in monthly premiums between the higher and lower deductibles. Then, I multiply that monthly difference by 12 to see how much extra I'm paying per year. If the annual difference is close to or even more than the deductible savings, it might not be worth it.
For example, last year I was debating between a $500 and $1,000 deductible. The monthly premium difference was about $25, so that's $300 extra per year. Over two years, that's $600—more than the $500 I'd save if I had an accident. In that case, I decided the higher deductible made sense financially, but I still had to ask myself if I'd be comfortable paying that $1,000 out-of-pocket if something happened.
It's all about balancing the math with your personal comfort zone... everyone's different.
That's a pretty smart way to look at it, honestly. I'm still figuring this stuff out (new driver here, yay me...), but doesn't it also depend on how likely you think you are to actually need the insurance? Like, if you're a super cautious driver with a short commute, maybe the higher deductible makes sense. But if you're like me—still getting used to parallel parking and tight turns—maybe playing it safe with a lower deductible is smarter? Just thinking out loud here...
"Like, if you're a super cautious driver with a short commute, maybe the higher deductible makes sense."
True, but even careful drivers can't control everything—like weather or other people's mistakes. I drive daily, and honestly, knowing I can comfortably afford my deductible helps me relax. Ever considered how emergency savings factor into this?
