Just looked at my auto insurance policy. I wanted to look at what kind of variables could lower my rate and to my surprise there weren't many. I have an excellent record so it's not high due to my history. In terms of coverage and liability I was already at the legally required state minimums so I could not change that. But the one thing I could change was my deductible. I had a $200 deductible. I figured I wanted to keep it nice and low in the event of a claim and I wouldn't be burdened too much. But after playing around with the online calculator I decided to go with a $1,000 deductible. The higher deductible saves my about $50 a month, which is $600 a year. It's an $800 difference between the low deductible and the high deductible. So as long as I don't need a claim in the next 16 months I will have essentially pocketed $800 in savings. And I can just hold onto that cash, let it earn interest, spend it on something more useful, etc. If you haven't had many claims, consider raising your deductible. But just know that in the chance you need a claim you will have to pay higher out of pocket.
Good point, save the money if you can reduce your monthly expenses but put the money in account just in case you do need it for an emergency.
