Understanding Deductibles

Your deductible is the amount you pay out of pocket before insurance pays.

The trade-off Higher deductible = lower premium. Lower deductible = higher premium but less out-of-pocket exposure on a claim.

Rule of thumb Choose the highest deductible you could comfortably pay tomorrow. For most households, that's $1,000–$2,500.

Doing the math If raising your auto deductible from $500 to $1,000 saves $200/year, you break even after 2.5 claim-free years.