Are the Savings Really Worth It?
A Closer Look at Deductible: Making the Right Choice for You
When choosing a home insurance policy, one key factor to consider is your deductible—the amount you’ll pay out of pocket before your insurance kicks in. Let’s break down the options:
You have two quotes in front of you:
Home Quote #1: $2,158 in annual premium with a $1,000 deductible.
Home Quote #2: $1,775 in annual premium with a $5,000 deductible.
At first glance, saving $383 a year on premiums with the second quote might seem appealing. But let’s look closer.
The difference in deductibles between the two is $4,000. Dividing that $4,000 difference by your annual savings of $383 gives you 10 years. That means you’d need to go 10 years without filing a claim for the savings to outweigh the higher deductible cost.
While saving money on premiums may be tempting, it's important to consider your family’s financial situation and how easily you could cover a $5,000 deductible if an unexpected event occurs. Sometimes, a lower deductible provides peace of mind and better financial security in case of emergencies.
Ultimately, the decision comes down to your priorities. You have the power to choose what’s best for your family. We’re here to help you weigh the options and make the right choice that fits your needs and offers the protection you deserve.
