I keep going back and forth on this. Like, yeah, saving money each month sounds great, but I know if something happened, I’d probably be scrambling to come up with the deductible. I’m still in school and my savings isn’t exactly impressive... Maybe if I had a bigger emergency fund, I’d risk it, but for now, the lower deductible just feels safer. Guess it depends how much you trust yourself not to dip into that “just in case” money.
“Guess it depends how much you trust yourself not to dip into that ‘just in case’ money.”
That’s the kicker, isn’t it? I’ve seen folks swear up and down they’ll never touch their emergency fund, but then life throws a curveball—car repairs, textbooks, whatever—and suddenly that “just in case” money is gone. Personally, I’d rather pay a bit more each month than risk scrambling if something big happens. Peace of mind’s worth something too, especially when you’re still building up savings.
I hear you—my “just in case” fund usually turns into “just bought new tires” fund. I’d rather pay a bit more each month than risk having to cough up a huge chunk all at once. My car’s fancy, but my stress tolerance isn’t.
I’d rather pay a bit more each month than risk having to cough up a huge chunk all at once.
I get where you’re coming from, but honestly, I’ve always leaned the other way. I’d rather keep my monthly costs down and just risk the higher deductible if something actually happens. Maybe it’s because I’ve been lucky (knock on wood), but in 15 years of road trips and daily commutes, I’ve only needed to file a claim once. That “just in case” fund does get raided for random stuff, but I figure as long as I’m not driving like a maniac, the odds are in my favor. Plus, those monthly savings add up over time... it’s not nothing.
I totally get the logic behind keeping monthly costs down, especially when you’ve got a good track record. Like you said,
—and for a lot of folks, that’s true for years at a time. For me, though, I just can’t shake the memory of my friend’s fender bender a few winters ago. She’d been driving for over a decade with zero incidents, then one icy morning she slid into a parked car. The deductible was way higher than she’d ever set aside, so she ended up putting it on a credit card and paying it off for months.“the odds are in my favor”
I guess I’m just wired to want predictability. Even if it means paying a bit more each month, I like knowing I won’t get blindsided by a big bill if something goes sideways. Maybe it’s not the most cost-effective in the long run, but it helps me sleep at night. That said, I do envy people who can roll the dice and come out ahead—just not sure I’ve got the nerves for it.