Having insurance is one of those necessities in life however sometimes in our effort to protect ourselves we waste money. We often get convinced by insurance companies to pay more per month so we can have a lower deductible. However, we have to think about what the chances are we will make a claim, and exactly how much we are paying over time for a safety net that you probably won’t ever use.
What you need to do is to request 3 quotes for your insurance, all with differing deductibles. Look at the difference in cost you are paying to get the lower deductible and decide if it is worth it to keep the lower deductible.
Personally we increased our deductibles. Upon looking at the difference in cost, and seeing what we would save over the course of 10 years we decided to up the deductible, as we believed the chances of us actually needing the insurance was slim. If it makes you feel better, take the difference in price and put it aside so if you do have an insurance claim you have saved money towards it.
Most people are nervous about insurance but before you make your decision keep in mind that insurance is big business, and companies make a fortune. There is a reason they do, and that simple reason is that the vast majority of people pay, but either never have a claim, or their claim is a fraction of what they have paid over the years.. So while it is important to have insurance, only get the insurance you actually require and fund your own deductible.
In some cases, the amount you save in a year or two equals the difference in the deductible. After that, it is pure savings. Why make insurance companies richer when the goal is to make yourself stable financially and have enough funds to give you the lifestyle you dream of.