In an attempt to lower our overall monthly expenses, I recently called my insurance agent to see how our annual cost would change if we increased our deductible from the current $500 to $1000. 

The agent clarified something for me that I did not know.  There are actually two deductibles, one for comprehensive and one for collision.  Both of mine are set at $500.  If I increased comprehensive to $1000, I would only save $12 a year, but if I increased collision to $1000 a year, I would save $50.  Considering we have had to use our car insurance twice in the last 18 months (once because someone hit us while we were stopped at a light and once because a vandal smashed in our window), I decided not to raise either deductible.

Our of curiousity, I asked what it would cost to lower the comprehensive to a 0 dollar deductible and was surprised to find that it would only cost $10 more.  Considering that we live in an urban area and cannot protect our vehicle with a garage, it may be well worth our while to change the coverage.  At this rate, it would take 50 years with no vandal damage to the car for this not to pay for itself.  Had we had a 0 deductible on comprehensive since we moved here, we would have only paid an extra $120 over 10 years!  That well would have paid for itself when our window was smashed and our car door damaged in October.

Financial experts always advice you to increase the insurance deductible as much as you comfortably can, but in our case, it might just make sense to lower the comprehensive deductible.

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