Picking the Right Deductible for You
When chooisng a deductible you have to look at your financial situation. Ask yourself…’If something happened to my boat tomorrow, what cost would I be comfortable absorbing’? If you answer $500, then maybe the lowest available deductible is good for you. If you are comfortable managing a larger amount, say $3000 then maybe the highest deductible is right for you. What you are deciding is the point at which you would put in a claim. If you wouldn’t put a claim in for less than $2000 than this is your target deductible.
Deductibles are a great way to manage costs because generally the higher the dedutible the lower the premium. However, don’t choose a high deductible just to get the lower premium. Insurance is designed to eliminate financial hardship from a loss and a deductible that is too high can cause you the hardship you’ve been paying a premium to avoid.