December 20, 2013

Why would a person consider raising the deductible on their insurance policies?

2 thoughts on “December 20, 2013”

  1. Katherine Graham says:

    Because the higher the deductibles, the lower the premiums. Also, when it comes to insurance, it should only be to cover major life events. It is wise to self-insure everything else.

  2. Mike Finley says:

    Well said, Katherine. Let’s recap.

    A high deductible ($1,000 for example) will reduce your monthly and yearly premiums. A low deductible ($100 for example) will increase your monthly and yearly premiums.

    Choose the high deductible and if you have a catastrophe, take the $1,000 out of your emergency fund. That is the purpose of that particular fund and that is why you should have one set aside.

    Follow Katherine’s advice in self-insuring on the small matters. Filing multiple small claims is a good way to get you dropped from your insurance company. Apply this advice to home, car and health, your financial future will thank you.

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