A high deductible is often a great way to keep your insurance premiums down. However, you shouldn’t set a deductible which is so high that you cannot afford to pay the deductible when you have a claim. I’ve seen people change their collision deductible from a $500 deductible to a $1,000 deductible because money was tight and this allowed them to save about $10 per month on the premium.
Wouldn’t you know it, but not even 2 months later they ended up in an At-Fault accident. Money was tight so they didn’t have that $1,000 to get the vehicle repaired. It took forever to save up that $1,000 so they were down to one vehicle which made it tough getting back and forth to work.
Please make sure you have something in savings for an emergency. Whether it’s a car accident or your furnace breaks down. Emergencies will happen, but if you’re prepared, you can transform that emergency into an inconvenience.