Whether it’s your car, home, or health policy, every insurance plan comes with one key decision: your deductible.
At our Glenpool agency, we often hear questions like:
“What exactly is a deductible?”
“Should I choose a low or high one?”
“How does it affect my monthly rate?”
Let’s break it down in plain terms—so you can make the right choice for your coverage and your budget.
What Is an Insurance Deductible?
Your deductible is the amount you agree to pay out of pocket before your insurance kicks in. It applies to most property and casualty policies—like auto, homeowners, renters, and more.
Example:
If you have a $1,000 deductible and file a claim for $5,000, you pay the first $1,000 and your insurer covers the remaining $4,000.
Higher vs. Lower Deductibles: What’s the Trade-Off?
Here’s the basic rule:
Higher deductible = Lower monthly premium
Lower deductible = Higher monthly premium
But it’s not just about cost—there are real-life factors to consider.
How to Choose the Right Deductible
Ask yourself these questions:
1. Can you afford the deductible in an emergency?
If not, a lower deductible might give you peace of mind.
2. Are you more likely to file claims?
If you drive frequently or live in a storm-prone area, a lower deductible may make sense.
3. Are you mainly concerned with lowering your monthly rate?
If so, a higher deductible can help save on premiums—just be prepared to pay more out of pocket if something happens.
4. How often do you actually file claims?
If you rarely use your insurance, a higher deductible might be the more cost-effective option over time.
Our Recommendation
We often find the sweet spot for many clients is somewhere in the middle. For example:
Auto Insurance: $500 or $1,000 is common
Home Insurance: $1,000 or $2,500 works well for most homeowners
But every situation is different—and we’re here to help you weigh your options.
Let’s Review Your Deductible Together
Choosing the right deductible is just one way to make sure your insurance fits your life—not just your premium.
Reach out today for a quick, no-pressure review. We’ll help you compare deductible options and see what works best for your budget.
