Raising deductible on insurance as you save more.

[Weird Tolkienish Figure]

Has anyone tried this?

For example, if you have saved up $2000 (hypothetically) in your emergency fund, you can raise the deductible on your car insurance to $2000 and save money with no loss or increase in risk.

[disneysteve]

Absolutely. We raised our deductibles as we got better established and could "self-insure" for the little things with our savings.

[Retired To Win]

Has anyone tried this?

For example, if you have saved up $2000 (hypothetically) in your emergency fund, you can raise the deductible on your car insurance to $2000 and save money with no loss or increase in risk.

That's if you are OK with having that $2000 go towards vehicle repair when you could have kept it had your deductible been lower. It's a balancing act between the risk and the cost of hedging against that risk.

[snafu]

If you drive an older vehicle you need to understand the relationship between the value your insurance places on your vehicle and your coverage/premium. Claims agents are quick to write off your auto when it could be repaired for a reasonable sum. The sum offered isn't the KBB value, you won't have enough to buy that make, model, year by adding deductible to insurers cheque. You will fight for every dollar and it's such a long term hassle you'll wish you'd taken the option of higher deductible, lower insurance rate over the many many years.

If we have an auto insurance agent here among posters could you please give us some indication of market value/claim value percentage?