Deductibles vs Premiums

When choosing between a lower premium with a higher deductible, consider how you would be able to pay for that higher deductible if you had a claim. If you have emergency savings built up to cover it, then a lower premium plan would likely make sense. But if you don’t have that deductible saved up and would need to use a credit card with a high interest rate to cover it, then choosing a lower deductible with a higher premium is likely a better option for you. Of course, there are more factors to consider than just premiums and deductibles, but how your insurance premiums and potential claims factor into your cash flow is a good starting point.