I've always been cautious about higher deductibles myself—sure, the lower premiums are tempting, but what happens if you get hit with two incidents close together? Happened to a friend of mine; first a deer jumped out, then a month later someone clipped her in a parking lot. She ended up paying way more out-of-pocket than she saved on premiums. Makes me wonder, how much do you really save in the long run if you're unlucky enough to have multiple claims?
I'm actually shopping around for insurance right now, and this is exactly what's been keeping me up at night, haha. My cousin went for the high deductible to save money, then BAM—hailstorm cracked his windshield and dented his hood within two weeks. He wasn't laughing then...
Honestly, I get why your cousin's experience would scare you off high deductibles, but I've seen plenty of cases where the opposite happens. Had a client once who insisted on a super low deductible because he was convinced something terrible would happen. Paid through the nose for years and never filed a single claim—ended up spending way more than he ever would've saved.
The thing is, insurance is always a gamble. If you're someone who's careful with money and could handle paying out-of-pocket for smaller incidents (like windshield cracks or minor dents), then a higher deductible usually makes sense. But if you're the type who'd lose sleep worrying about unexpected costs, maybe paying a bit extra each month for peace of mind isn't such a bad deal after all.
There's no perfect answer here...just gotta figure out what kind of risk you're comfortable with.
Yeah, insurance is such a weird balancing act. I used to be all about low deductibles until I realized I was basically throwing money at my paranoia. One time, a tree branch fell on my car—nothing major, just a dented hood—and the deductible was so close to the repair cost that it wasn't even worth filing. Felt like I'd been punked by my own policy...lesson learned, haha. Now I'm more comfortable with a higher deductible and just keep some emergency cash stashed away for peace of mind.
"I used to be all about low deductibles until I realized I was basically throwing money at my paranoia."
This totally resonates with me. A few years back, I was planning a cross-country road trip and got super paranoid about potential breakdowns or accidents. Naturally, I went for the lowest deductible possible—thinking it'd give me peace of mind. Fast forward to the trip: had a minor fender bender in a parking lot (my fault, embarrassingly enough), and the repair bill ended up being just slightly above my deductible. After doing the math, I realized I'd spent way more on premiums over time than the repair itself would've cost out-of-pocket.
Since then, I've shifted gears (pun intended) and started approaching deductibles differently. Now I go step-by-step: first, I figure out how much cash I'm comfortable setting aside as an emergency fund; second, I match that amount roughly to my deductible; and third, I revisit this every year or two to adjust based on my financial situation. It's not perfect, but it feels less like gambling and more like informed risk management...
