Everyone always likes to tout having a low insurance deductible, but is it really necessary? It depends, but here is some rough math.
Just as a hypothetical example, let’s say your car insurance premiums are $2500 annually and there is a $500 deductible. If you could get your annual premiums down to $2000 by increasing the deductible to $1500, is it worth it?
Here is the “it depends” part. When was the last time you had an accident? If it was greater than 3 years ago, then you are better pocketing the $500 savings per year to pay a high deductible. If you go well beyond that time period, say 5 years without an accident, well you just saved more than the cost of your deductible.
Put the money back in your pocket and not the insurance companies!