Insurance Tip of the Week #3

High vs. Low Deductible

As insurance brokers, we offer a variety of options. With these choices you have to weigh the options that are best for your own situation because not everyone is the same.

When choosing your deductible consider these questions:

– Can I come up with that amount of money in a short period of time?

– If something happens how much can I afford to fix myself?

– How much do I want to fix myself before it gets to be too much?

– Will losing my claims free discount be worth putting in a claim?

– What kind of financial situation am I in now?

If you aren’t comfortable or able to choose the high deductible for some savings to be applied to your annual premium, then you have the option to chose the lower deductible. Maybe your financial situation will have changed in a year and you can look at the option to raise the deductible on your policy, giving you some savings in annual premium.

Some people will justify the cost of a high deductible because it is a one-time event where they feel like they would be using their policy coverage for something that they are not equipped to handle fixing themselves, depending on the circumstances.

The rationale for buying a lower deductible is the anticipation that there is a greater chance of something happening and maybe you’d rather not pay a hefty one-time deductible for something that could likely happen again at any time.

As always, give us a call or stop by and chat if you have any questions or concerns about your situation.

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