Car Insurance Deductible & Dave Ramsey

I was skimming through Dave Ramsey’s Total Money Makeover book last night when I came across something interesting about car insurance.

He says to increase your deductibles to lower your premiums.  I have always been under the impression to keep your deductibles low so you don’t get screwed if you need your insurance.

But, really, how often do you use your car insurance?  My deductible is $500 and although I’ve needed my insurance a couple times in the past year or so (theft, etc.), it was never even more than $500. 

Plus, if you have plenty of savings and you do have to pay a deductible, well, that’s what savings are for right?  And if you’re following Dave’s plan, then you very well should have plenty of savings.

So, I figured I could save money every month instead because chances are that I might not even ever need to pay my deductible.  **fingers crossed**

I currently pay $141 per month in insurance.  (Yes, it’s completely absurd.)  I just called and changed my deductible to $2,000.  Fingers crossed that I have a insanely lower bill come later this month.