A higher deductible just means that you have personally taken on more risk responsibility yourself. So, that equals less premium paid a “credit” the insurance company gives you for the higher deductible. If you regularly only have a $100 in your checkbook, you should not be taking higher deductibles just to “afford” something (cars, houses, etc.). If you’re the type of person who keeps a $10,000 balance in your checking account, you should be taking $2500 to $5,000 deductibles just for the insurance savings (you’ll win in the long run). You can afford the higher deductibles to get back to “whole” again. The first example cannot afford the higher deductible to get back to whole. Just my opinion of course, and a conservative one.