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Is it better to have a higher deductible or a lower deductible?

Well, that all depends on personal preference. A higher deductible means you will pay less overall for your insurance policy since you will pay more out of your own pocket when filing a claim. Contrariwise, a lower deductible means a higher overall cost for your insurance policy, since you’ll be paying less out of pocket when you file a claim.

So which is better for you? Factor in some of the following:

• Do you live in an urban area where accidents are more common or more likely? If you think collisions are a fairly likely possibility, you might consider a low deductible, since there’s a higher likelihood of accident. You may be paying more for your insurance each month, but you’ll be paying much less out of pocket when that Orlando Magic fan careens around the curb and bumps ya.
• Are you terribly accident-prone? Your opinion on risk determines a good deal of your decision on your deductible. If you have a pretty clean collision record and you’re a decently safe driver, your risk of accident is generally lower, so you can feel a smidge safer about a higher deductible. If an accident does occur, you’ll be paying more out of pocket, but you’re banking on the hope that your safe driving will lessen the chance of that happening.

And the most important part about your deductible? Keeping in touch with your agent to actively discuss your policy. Your agent is there to customize your policy to fit YOUR lifestyle, so make sure you keep an open relationship with him or her!