Most drivers opt for the lowest deductible that they can manage and still have a good rate. Some drivers are even willing to pay a high monthly rate in order to pay an extremely low deductible in the wake of an unexpected accident. This isn’t necessarily a bad idea, but for thousands of drivers it is a huge waste of money. Drivers who are only on the road infrequently can save a bundle by accepting a high deductible.
For drivers who are on the road frequently, especially on the road in high traffic lanes, a low deductible probably is the better idea. For drivers in rural areas, urban drivers who use other methods of transportation and older drivers who only use the vehicle for errands that only take them a short distance, a high deductible plan can be a great idea. A driver with low risk can make much better use of a high deductible plan and will save quite a bit on their monthly rate.
A high deductible means that a driver will pay more in an accident than a high cost plan with a low deductible. Drivers that have a deductible in excess of $500 are advised to keep some money held back just in case of emergencies. Accidents do happen and even if a driver is in a low risk zone and there is no way to be prepared for every other driver. Saving a deductible payment is a smart move if you’ve saving on monthly payments.
Many drivers can take advantage of a high deductible plan. Short distance drivers and infrequent drivers can save hundreds or thousands of dollars with a high deductible plan. Many insurance companies charge extremely low rates with high deductible plans. Just in case of emergencies, drivers are encouraged to keep some cash back to help with the payments on a high deductible plan.