Is a lower deductible always the right call? I heard two insurance adjusters arguing at a diner.

I was eating breakfast at a diner near Tampa last Tuesday and overheard two adjusters at the next table. One said always go for the lowest deductible because you never know when a hailstorm will hit. The other argued that a higher deductible saves you $40 a month which adds up over 5 years to almost $2,400. Made me wonder which side actually wins out when you look at average claim frequency. Has anyone here run the actual numbers on their own policy and found a clear answer?

2 comments

2 Comments

ray36316d ago

Had a similar debate with my brother in law who's a claims adjuster. He said most people don't realize how rarely they actually file a claim. We ran my numbers and I was paying an extra $480 a year for the lower deductible. Over 8 years that's almost $4,000 saved. I kept the higher deductible and just set aside some emergency money instead. The real kicker is that filing a small claim can actually raise your rates so you end up losing either way.

the_robin16d ago

Wait did you actually run the numbers yourself or was that your brother in law doing the math for you? I've been meaning to crunch mine but keep putting it off.