Is a $500 Car Insurance Deductible a Lot
A new homeowner weighs a higher deductible
After closing on their house, a couple sat down to combine their insurance paperwork for the first time in years. Their car policy had a much lower deductible left over from a plan they'd set up right after college, when neither of them had much saved and a smaller deductible felt safer. Now they had a mortgage, a modest emergency fund, and a lender-required home policy sitting next to it. They made the switch, kept the lower premium going forward, and left the extra cushion in savings instead of handing it to the insurer every month.
Now that you know what deductible fits your savings, compare quotes at that deductible to see who prices it best.
If you do
You'll likely pay a lower monthly premium starting right away, freeing up cash for mortgage and moving costs. As long as that amount is sitting in savings, this trade works in your favor every single month you don't file a claim.
If you don't
Keeping a lower deductible means smaller out-of-pocket costs if you file a claim. But you'll pay more every month for that lower risk, money that adds up fast when you're also covering a new mortgage, moving expenses, and a homeowners policy you didn't have before.
