In an insurance policy, the deductible is the amount that you must pay out of pocket before the insurance company pays. A higher deductible equals lower premium.
- Consider how much you can afford if you have a claim, $250 or $500 or $5,000
- How much will I save with a higher deductible? If the amount you save, for example $300 a year, is at least half of the change in deductible (say you changed from $500 to $1,000 which is a $500 difference) then its a good move. It will only take two years of savings ($600) to make up for the $500 difference.
- What are my chances of having a claim? Health insurance usually has more claims activity than a homeowner policy.
- Still not sure? Call Brouwer Insurance (760) 745-5151.