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Increase Your Deductibles: A Smart Move for Your Insurance


Smart Moves with Your Insurance: Why Choosing Higher Deductibles Makes Sense

Let’s talk about a smart way to manage your insurance costs without losing the protection you need. It’s a small change to your insurance plan —increasing your deductibles—and while it may seem counterintuitive, it can save you money. Here’s the lowdown:

What’s a Deductible Anyway?

First off, deductibles are what you pay out of your pocket before your insurance starts paying when you file a claim. Here’s how it works:

Say you have auto insurance with a $500 deductible, and oops, you get into a fender bender that costs $2,000 to fix. You pay the first $500, and your insurance covers the rest, $1,500.

Or imagine, your kitchen gets damaged in a big way, like $30,000 worth of damage. If your home insurance deductible is $1,000, your insurance would pay $29,000 of that bill.

Why Higher Deductibles Can Be a Good Move

Save Money on Premiums: The main perk of a higher deductible is it usually makes your insurance cost less month to month. So, if your deductible goes from $1,000 to $5,000, your insurance company is on the hook for less money, which means they’ll charge you less.

Thinking Ahead: Choosing a higher deductible means you’re planning for the future. Keeping the deductible amount in an emergency or “rainy day ready” fund is advisable. Ultimately it’s about being smart with your money, ensuring you’re covered without overspending.

Keep Your Insurance Record Clean: Going with a higher deductible also means you’ll probably only make claims for bigger issues, not the small stuff. This can make you look like a safer bet to insurance companies, which might lead to even lower costs.

Be More Careful with Your Stuff: Knowing you have a higher deductible might make you more careful with your belongings. It’s a good nudge to take steps to avoid accidents or damages.

Things to Think About

 ValuePenguin states it nicely: “Choosing your deductible is about balancing your budget and the amount of risk you can tolerate.” While going for a higher deductible can be smart, it’s not a one-size-fits-all solution. Consider how much risk you’re comfortable with and your financial situation. That’s where we come in at Green Brook Insurance. Everyone’s situation is unique, and we’re here to help determine what makes the most sense for you.

Choosing the right deductible is about finding the right balance between saving money now and being prepared for what might happen. It’s a smart way to make sure you’re covered without breaking the bank.