Should I choose a higher deductible to save money?

I’ve seen a lot of people mention getting dropped by their insurance after filing claims, even for things like home or auto. It seems like the only time you should make a claim is when something major happens. I’m wondering if it’s a good idea to choose a higher deductible to lower my monthly costs. Would love to hear your thoughts.

Yes, insurance is best for covering large, unexpected losses. But don’t raise your deductible to an amount you can’t handle when something goes wrong. Be realistic about what you could pay out of pocket.

@Ella
True, the industry doesn’t do a great job of educating people about insurance. They focus more on flashy ads than actually explaining how it works.

Clove said:
@Ella
True, the industry doesn’t do a great job of educating people about insurance. They focus more on flashy ads than actually explaining how it works.

There’s so much negativity around insurance that any attempt to explain things gets spun into ‘insurance companies don’t want you to use what you’re paying for.’

@Ella
I once had someone yell at me for suggesting they get an estimate before filing a claim. They had a $30k deductible and the damage was below that. They were furious for weeks, even though filing the claim wouldn’t have helped them at all.

@Ella
To be fair, insurance companies have their faults too. But body shops often stir the pot with claims that insurance doesn’t cover things properly, which isn’t always true.

Set your deductible to the highest amount you can comfortably afford. If $1000 isn’t a strain, raising it from $500 to $1000 could save you money. Just check with your lender if you have a loan, as they might have limits on deductible amounts. And don’t go so high that you can’t afford repairs when needed.

@Ariella
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Aurora said:
@Ariella
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Exactly. A lot of people focus only on the savings but don’t consider the potential costs if they actually need to use their insurance. It’s a balance.

Aurora said:
@Ariella
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I raised mine from $500 to $1000, which saved me about $100 a year. As long as you drive safely, it can be worth it.

A higher deductible can help save money, but make sure you also have a dashcam. It can be useful in liability claims, especially in states like California and Colorado where laws protect you from penalties for non-fault claims.

@Valentina
Most insurance companies treat all claims the same, regardless of fault.

Sloane said:
@Valentina
Most insurance companies treat all claims the same, regardless of fault.

Not always. Liability claims don’t show up in insurance history, and states like California don’t allow insurers to penalize you for non-fault claims.

Insurance companies have been cutting costs by dropping people with claims. It’s best to use insurance only for major losses.

Monica said:
Insurance companies have been cutting costs by dropping people with claims. It’s best to use insurance only for major losses.

Right, insurance is there to protect you from financial disaster, not small inconveniences.

People often try to file claims for maintenance issues like an old AC unit or minor plumbing leaks. Insurance is for major incidents, not regular upkeep. Always get an estimate first before deciding to file a claim.

A higher deductible can work if you have a good driving record. Small claims can drive up rates and hurt your car’s resale value.

Aurora said:
A higher deductible can work if you have a good driving record. Small claims can drive up rates and hurt your car’s resale value.

For newer cars, windshield replacements can cost over $1000 due to recalibration for safety features. I carry a $0 glass deductible because of this.

@Ben
Some local shops charge less by skipping unnecessary recalibrations. I had a 2021 Tacoma windshield replaced for $260. Big chains inflate the costs.

We used roadside assistance for a flat tire and got dropped by our insurance. They didn’t even pay for the tire, just the service we already paid for.