CHOOSING YOUR DEDUCTIBLES
When deciding on your insurance deductible, a general rule of thumb to remember is to choose the highest insurance deductible amount you can afford. If you can only afford a $500 deductible, don’t choose a $1,000 deductible in hopes of saving money on your auto insurance policy. If you were to get into an accident, you will have to pay the $1,000 deductible before your auto insurance would kick in.
In fact, I very rarely advised customers to go with anything higher than $500 unless they are older with older cars and still want full coverage, but don't drive very often. The difference in the monthly premium is not nearly worth the amount you pay out of pocket in the event of an accident, which is the reason for insurance in the first place.
It actually angers me when co-workers advise people (especially younger, uninformed drivers) to go with a higher deductible (like $1000 for instance) to make the monthly premium cheaper. Personally, I tell young drivers I give them the same advice on coverages I would give my own daughters, who are 25 and 19, just as I would hope their insurance agent does for them.
In the end, the choice is solely left to the customer (of course) but if you do the math, the long term savings are really not beneficial should you have an accident requiring a claim to be filed in a five year period. Again, just my #twocents.
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