Raising your deductible will save some money on your insurance costs, however, the amount of money you save may not be what you think. Your insurance deductible will directly affect how much you get paid in a claim, but you can save thousands of dollars if you increase your deductible using the right strategy.
If you have the money on hand and are willing to pay for damages resulting from a claim, then you can increase your deductible to save on costs. If you can afford it, then take the savings your insurance company will give you and start saving money now.
If you are in a stable financial position and would likely take care of small issues yourself (without making a claim), it can make sense to get a higher deductible. If, for instance, you would never make a claim for under $1,000 on your car because you can afford to pay for it yourself, then a higher deductible of $1,000 makes a lot of financial sense.
On the other hand, if you are worried about your ability to cover any amount of unexpected costs, then you’re better off paying a few more dollars in insurance every year to get a deductible you could afford.