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Old 09-21-2017, 07:11 PM
kork13 kork13 is offline
$ Saving Assistant Professor
Join Date: Mar 2008
Location: Alaska
Forum Posts: 3,600

I generally just go with the highest deductible that I can reasonably tolerate, unless getting the lower deductible is a negligible difference in the rate (rarely the case). I figure that insurance is for major losses (because if you claim every minor issue, you'll either get dropped/blacklisted from the company, or your rates will skyrocket). As I see it, in the rare circumstance that I suffer a loss significant enough to make an insurance claim, it's likely at least a $10k loss or (often) more. Shaving $1k off the top is small beans, and partly what an EF is there to help cover.

Besides, the difference in premium often well exceeds the savings in the deductible. Going from a $1000 deductible to $500 on a home or auto policy might cost you anywhere from $50-$150+ per year. How often have you filed a claim? In 15 years, I've filed 1 (when my home was broken into... door kicked open, all the valuables/electronics stolen, ~$9k loss). If I've saved $100/yr in premiums, I will have saved more in premiums than I spent on the deductible.
"Praestantia per minutus" ... "Acta non verba"
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