Deductibles - Is the Juice Worth the Squeeze?

Today's topic is deductibles.

Consider the following:
- Your claims stay on record and negatively impact rates for 5 years
- Everything has gotten more expensive - including labor, materials, parts, etc. to repair homes, vehicles, motorcycles, etc. after claims
- The lower your deductibles, the higher your rates

Given today's insurance environment, one must ask themselves, "Is the juice worth the squeeze? Am I carrying the appropriate deductible(s)?"

My advice?
- Set your deductible(s) at a level where you won't feel financially strapped if you have to come up with the money at a moment's notice. Whether that amount is $500, $1K, $2,500, $5K or even $10K, you want it to be set at a level you're comfortable with.

- Generally, a higher deductible is favorable for three reasons:
1. You'll pay less for insurance with a higher deductible
2. Since claims stay on record so long, you really want to avoid little claims where you're tempted to use insurance rather than pay out of pocket. I call this approach "saving clients from themselves."
3. Many insurance companies are only allowing one or two claims on record within 5 years. Anything more and your situation could get very ugly. Don't shoot yourself in the foot.

Hopefully this brings some insight and value to those of you reading this.

That's all folks!