I get the logic, but personally I'd be careful with higher deductibles, especially if you're young and tight on cash. A friend of mine did exactly that—upped the deductible to save monthly—but then got rear-ended on a road trip. Suddenly needing $1k upfront was stressful as hell for him. If your savings aren't solid yet, it might be safer to stick with a deductible you know you can cover comfortably...just my two cents.
"Suddenly needing $1k upfront was stressful as hell for him."
Yeah, that's a really good point. A lot of people jump at the lower monthly payments without thinking about the "what ifs." A couple things I'd suggest considering:
- If you do go with a higher deductible, try setting aside the difference you're saving each month into an emergency fund. That way, if something happens, you've got at least part of the deductible covered.
- Check if your insurance company offers any discounts for stuff like defensive driving courses or good student grades. I took one of those online classes and it knocked a decent chunk off my premium.
- Shop around every year or two. Rates can vary a ton between companies, especially for younger drivers.
I get that money's tight when you're young (trust me, been there...), but insurance is one area where cutting corners can bite you later. Better safe than sorry, imo.
Honestly, setting aside cash each month sounds great in theory, but when I was 20 and broke, that money always ended up going to gas or food. Sometimes a lower deductible's just less risky if you're prone to bad luck like me...
"Sometimes a lower deductible's just less risky if you're prone to bad luck like me..."
Yeah, totally get this. When I was younger and barely scraping by, I tried the whole "high deductible, stash the difference" approach too. But reality check—it rarely worked out as planned. A few things I learned along the way:
- Lower deductibles might cost a little extra monthly, but at least you know exactly what you're dealing with if something goes sideways.
- High deductibles can seem tempting, but one unexpected accident or breakdown can wipe out months of careful saving.
- If you're already tight on cash, predictability is your friend. Knowing your max out-of-pocket upfront can save a lot of stress.
I guess it comes down to balancing risk tolerance with your actual financial situation. For me, peace of mind was worth the slightly higher monthly payment...especially when my car was basically held together by duct tape and optimism.
I went the high deductible route once too, thinking I'd be smart and save some cash. Then one rainy morning, my tire blew out on the freeway—talk about bad timing. Between towing fees and repairs, my "emergency fund" vanished faster than free donuts at the office. Learned my lesson: sometimes paying a bit more monthly is worth avoiding those surprise gut punches to your wallet...especially if your luck runs anything like mine.
