Understanding Deductibles: How to Choose the Right Amount

One of the most common questions we get is "What deductible should I choose?" It's a great question, and the answer depends on your personal situation.

What Is a Deductible?

A deductible is the amount you pay out of pocket before your insurance kicks in. If you have a $500 deductible and $2,000 in damage, you pay $500 and insurance covers the remaining $1,500.

Higher Deductible = Lower Premium

This is the basic trade-off. Choosing a $1,000 deductible instead of $500 will lower your monthly premium. But it also means you'll pay more if you have a claim.

Questions to Ask Yourself

1. How much could you afford to pay unexpectedly?

If coming up with $1,000 tomorrow would be a hardship, a lower deductible might give you peace of mind—even if it costs a bit more monthly.

2. How's your driving record?

If you haven't had a claim in years, a higher deductible might make sense since you're less likely to need it.

3. What's the actual savings?

Ask us to quote both options. Sometimes the premium difference is only $10-15 per month. Other times it's significant. The math matters.

Our Recommendation

For most folks, we suggest choosing the highest deductible you could comfortably afford in an emergency. This keeps your premium reasonable while still providing protection when you need it.

Not sure what's right for you? Give us a call. We'll run the numbers together and find the option that fits your budget and your peace of mind.