A general rule of thumb states that opting for the highest insurance deductible you can afford will ultimately save you money.
As usual, it pays to run the numbers.
We’re renewing our renters insurance. Our deductible is $500. Our premium is $114 for the year.
Raising it to $1,000 would lower my annual premium by about $10.
So, I could save $10 per year if we don’t have to file a claim, but if we do (and let’s hope we never do!) it’ll cost me an extra $500.
I’d rather pay an extra $10 per year just in case.
One more thing: Our regular renters insurance policy doesn’t cover floods from rainwater or other outside causes. It does cover floods from burst pipes, though. Since we’re on the ground floor and our windows open up to, well, the ground, I think it’s worth paying an extra $130 per year for $30,000 in coverage.