Would you risk a higher deductible to lower your insurance bill?

I’d rather budget for a slightly higher monthly payment than risk a huge bill all at once.

Honestly, I’m with you on that. I drive a pretty basic sedan, so repairs aren’t as wild as luxury cars, but even then, one accident could wipe out any savings from lower premiums in a heartbeat. Have you ever actually run the numbers on how much you’d save over, say, five years with a higher deductible? I did once and it wasn’t as much as I thought. Sometimes the “peace of mind tax” is just worth paying... but maybe I’m just too risk-averse for my own good.

Sometimes the “peace of mind tax” is just worth paying...

I get that, but I’ve actually gone the other way. We bumped our deductible up last year after looking at our claim history - turns out we hadn’t filed anything in almost a decade. The monthly savings weren’t huge, but over a few years, it added up to a decent chunk. I figure if we do need to pay the higher deductible, we’ll have already saved most of it. Maybe it’s a gamble, but with a reliable minivan and careful driving, it felt like a safe bet for us.

Makes sense - lots of folks don’t realize how much they can save by tweaking the deductible if their claim history is clean. Out of curiosity, did you look at how much the premium difference would be for even higher deductibles, or did you hit a point where it just didn’t seem worth it anymore? Sometimes there’s a sweet spot before the savings level off.

Title: Would You Risk a Higher Deductible to Lower Your Insurance Bill?

Sometimes there’s a sweet spot before the savings level off.

I get what you mean about the “sweet spot,” but honestly, I’ve found that the savings from raising your deductible past a certain point just aren’t that impressive. I ran the numbers with my insurer - upping my deductible from $500 to $1,000 dropped my premium by about $120 a year. But when I looked at going up to $2,000, the extra savings were only like $40 more per year. At that point, it didn’t really make sense for me.

I think people sometimes overestimate how much they’ll save by cranking the deductible way up. Sure, if you never file a claim, you come out ahead. But all it takes is one accident and suddenly you’re shelling out way more than you saved on premiums. For me, it’s not just about claim history - it’s also about how much cash I’d actually have on hand if something went wrong.

A friend of mine went for the highest deductible possible because he hadn’t had an accident in years. Then he hit a deer last winter and had to cough up almost two grand before insurance kicked in. He said he basically wiped out all his “savings” from lower premiums in one go.

I guess it depends on your risk tolerance and emergency fund situation. Personally, I’d rather pay a little more each year and know I’m not going to be scrambling if something happens. The math just doesn’t add up for me once you get past that initial drop in premium costs.

Honestly, I get where you’re coming from, but for folks who rarely file claims, the higher deductible can still make sense. I’ve seen people go years without a single incident and pocket the difference. It’s not for everyone, but if you’ve got a solid emergency fund and drive carefully, sometimes it’s worth the gamble. Just gotta be realistic about your own habits and finances...