Admittedly, there are years that you are not able to take advantage of your premium because you do not incur damage or do not cause damage to others. This is the reason why it is wiser to opt for high auto insurance deductibles when procuring an insurance policy. Who might be the best people who should have high auto insurance deductibles?
Owners of old cars
It makes sense to pay a low premium for an old car, correct? And of course a higher premium has to be paid for a brand new car. Insurance coverage is there for the purpose of compensating you; they take it upon themselves the burden of paying for mishaps and accidents that you are involved in, in exchange of the premiums you pay. However, the least thing you want to happen to you is to get involved in an accident. So to save up on premiums, it would be better to shoulder a bigger portion of the bill when you file or somebody files an insurance claim against you. An old car will be cheaper to repair and replace, so old cars will command a smaller amount of premium. To save money further, opt to have high auto insurance deductibles. However, since the car is old, make sure that your deductible is not too high because the deductible might exceed the costs of damages from an accident and the insurance company will end up paying nothing.
Low Income/Minimum wage earners
Water, electricity bills and rent are responsibilities that come every month. Insurance premiums add to the headache, but is undeniably not only necessary but mandatory. Since almost every driver on the road is mindful of their driving, your chances of getting into an accident could be low. Opting for a lower and cheaper type of insurance coverage is an option, especially if your income is being eaten up by monthly bills aside from your basic water, electricity and rent. This is where opting for high auto insurance deductibles come in.
Any insurance company would be hesitant to insure someone with a bad track record with regard to accidents. Two things will happen: either you get rejected or you pay a higher premium. The remedy if the latter happens, is to agree to shoulder part of the damage. This will be agreed upon before the commencement of the insurance policy
You use your car sparingly
If it’s more to commute to work and you take the bus or train every day, then it means that the car is being used sparingly. The car is rarely exposed to the risks that it has been insured against. It would be better and practical to bear more of the burden of damages—which means it’s better to have high auto insurance deductibles because the car is rarely exposed to possible accidents.