For property insurance, what would you say is the optimal deductible you should have?
Too small, and your rates are higher. Too big, and then you end up paying for a lot more stuff out of pocket, right?
Whether it’s your property or your car, you want to avoid having to make claims. So Anything under a couple thousand you’re paying for out of pocket anyways. There’s a sweet spot where the amount of money you save in premium doesn’t increase much as you increase the deductible. And going the other way, premiums start going up substantially for every bit you reduce the deductible. If you’re in that spot, you’ve probably picked the right deductible.
I’m not an insurance agent, so take this as just an average persons opinion. What do others think?
Don’t make the deductible too big. Accidents do happen, so you don’t want to get surprised with a big bill.
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