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The deductible you pay is the amount of money you pay upfront should you get in an automobile accident. After you have paid your deductible, the insurance pays the rest. The higher of a deductible you have, the lower your insurance payments will be each month since the insurance company will not have to fork out as much money if you get in an accident.

Therefore, if you are a safe driver, and rarely get into accidents, chances are that the amount of money you save through lower insurance payments will accumulate to be much more than what you would ever have to pay (your deductible). Although having a higher deductible means lower insurance payments, it is important to be sure that whatever deductible you choose is a deductible you will be able to afford since you never know when you may be involved in an accident. It is also important to note that if you are accident prone, it may be more wise to have a lower deductible with higher insurance payments so that you do not go broke through always paying high deductibles. No matter how much your deductible is, however, it is wise to save that amount of money and keep it in a savings so that if and when you ever need to pay it, you will have the money.

If you cant afford a high deductible at first, you can also put money into a savings account until you have enough saved up, enabling you to afford a high deductible eventually and therefore, you can change your insurance to a higher deductible once you can afford to do so, which will give you lower payments.

Even if you never end up using the money saved through paying a deductible, the money saved can at least be making interest and you will have a nice savings.

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From: (car insurance) http://www.foxquotes.com/making-car-insurance-more-affordable/how-to-make-auto-insurance-more-affordable/

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