Good insights here, especially about balancing risk vs. savings. A few practical points from my experience:
- If your car's older and not worth much, a high deductible usually makes sense. No point paying extra premiums for coverage that won't pay out much anyway.
- For newer or higher-value cars, a lower deductible can be worth it, especially if you're frequently in situations where accidents are more likely (city parking, heavy traffic).
- About your question on multiple claims: unfortunately, I've seen it happen. Had a client once who had two separate incidents within three months—one accident and one vandalism. It was rough, but thankfully their deductible wasn't super high. Still, that's pretty rare overall.
- My rule of thumb is to pick a deductible amount you could comfortably pay tomorrow without stressing too much. If the thought of paying $1,000 unexpectedly makes you cringe, maybe stick closer to $500.
Bottom line: it's about finding that sweet spot between monthly affordability and your comfort level with unexpected expenses.
"My rule of thumb is to pick a deductible amount you could comfortably pay tomorrow without stressing too much."
This right here is exactly how I approach it. Honestly, people tend to overthink deductibles. It's really just about being realistic with yourself. If you're someone who can comfortably handle a $1,000 hit without losing sleep, then go for the higher deductible and save on premiums. But if you're living paycheck-to-paycheck or have tight finances, don't kid yourself—stick to something lower.
I commute daily through heavy city traffic, and trust me, I've seen enough fender-benders and parking lot scrapes to know accidents aren't always avoidable, no matter how careful you are. Had a coworker who went with a high deductible to save a few bucks each month, then got rear-ended twice in one year. He ended up regretting it big time because those savings vanished instantly when he had to shell out $1,000 each time. Ouch.
But here's something else worth considering: how often do you realistically expect to file a claim? If you're the type who shrugs off minor dings and scratches, a higher deductible might make sense. On the other hand, if even small damage bothers you enough to file a claim, maybe keep it low.
One thing I slightly disagree with is the idea that multiple claims are rare. Sure, two incidents in three months might be unusual, but multiple claims over a few years aren't that uncommon—especially if you drive daily in crowded areas. I've seen it happen plenty.
Here's a question though... does anyone factor in their emergency savings when choosing a deductible? Like, do you keep your deductible lower if your savings are thin, or do you just roll the dice hoping nothing happens? Curious how others handle that part.
I see your point, but from my experience handling claims daily, I think people underestimate how quickly multiple incidents can stack up. Last year alone, I had a client who got sideswiped in traffic and then two months later had a tree branch fall on her parked car—totally unrelated but costly. She regretted choosing the higher deductible because it drained her savings pretty quick. Sometimes it's worth paying a bit more monthly just to avoid the stress of a big unexpected bill...
"Sometimes it's worth paying a bit more monthly just to avoid the stress of a big unexpected bill..."
I get what you're saying, but honestly, if you're someone like me who's already paying higher premiums due to past tickets or accidents, going with a lower deductible just isn't practical. Here's how I see it step-by-step:
1. Calculate your monthly premium difference between high and low deductibles.
2. Multiply that difference by 12 months—this is your annual extra cost.
3. Compare that annual cost to your deductible savings if you had an accident.
For me, the math rarely favors paying more monthly. I've had my share of incidents (trust me, insurance companies love me 🙄), but even then, I'd rather keep my monthly costs down and just set aside some emergency cash. Sure, it's stressful when something happens, but paying extra every single month for something that might not happen feels like throwing money away. Just my two cents from someone who's been there...multiple times.
I see your point, but honestly, not everyone has the discipline to consistently set aside emergency cash. I've tried that route before, thinking I'd save the difference each month, but life happens...and suddenly that "emergency fund" turns into pizza money or concert tickets.
"paying extra every single month for something that might not happen feels like throwing money away."
True, but peace of mind has value too. For some of us, knowing we're covered without scrambling for cash after an accident is worth the extra monthly hit.
