What Are the Benefits of Selecting High Deductibles?

Deductibles (the amount of money you must pay out of pocket before insurance coverage kicks in) are used primarily for real and personal property insurance, including motor vehicle collision coverage. The price difference between a policy with a $250 deductible and a policy with a $1000 deductible is significant—especially if you factor in the years you spend paying higher monthly premiums. You can reduce costs by selecting high deductibles. Consider using money saved to buy other types of insurance where you need them. For example, the amount you save by having a higher deductible might make up for loss of rents coverage.