What's the best deductible amount on my auto insurance?
Answers | 2
Your deductible is the amount that you will have to pay to repair your vehicle(s) in the event of an accident, so the answer differs for everyone. Ideally, the deductible should equal an amount that you are able to set aside (maybe in a savings account) in the event of an accident that isn't covered by other insurance. The higher the deductible, the lower the insurance premium so there is definitely an incentive to set aside at least $500 if not $1,000 if you are able to do so.
It depends mainly on your risk tolerance. I have some wealthy clients who carry low deductibles. They could easily absorb the extra deductible amount - but, they still have a low risk tolerance. The best thing to do is get quotes with higher deductibles and see if the savings warrants the risk. Many times the savings are small and it doesn't make sense. In some instances people will carry a higher deductible for collision and keep the comprehensive deductible low as the math works - the risk and savings is worth it on one and not the other. Thanks for the question. I hope this helps!