Why Does a Higher Deductible Lower Your Premium?
Because you are buying less insurance and taking on more risk yourself. The mechanism is straightforward, and the reason the saving flattens out is the interesting part.
Sep 9, 202613 min read
Author
Sarah Mitchell
Managing Editor
Sarah Mitchell is the Managing Editor of Best Insurance Guide. She leads the editorial team that researches, writes and fact-checks our guides on home, auto and renters insurance, working with our contributors to verify claims against regulator and industry sources before publication. *Editorial note: contributor profiles reflect current editorial roles. License numbers and verifiable professional credentials are published here as contributors provide them. Our guides are educational and do not constitute personalized financial advice — always confirm details with a licensed agent or your state insurance department before buying.*
Articles by Sarah Mitchell
Zero Down Car Insurance: What $0 Down Actually Means
No insurer gives you coverage for nothing. What zero down policies actually do is move the money later and charge you for the privilege. Here is the arithmetic.
Sep 9, 202613 min read
Average Motorcycle Insurance Cost: Why the Number Means Nothing
Motorcycle premiums range from under $200 to over $2,000 for the same rider. What actually drives the spread, and the levers that reliably cut it.
Sep 8, 202612 min read
What to Do After a Car Accident That Wasn't Your Fault
The first hour decides the claim. What to document, whether to claim on your own policy or theirs, and the money most people never think to ask for.
Sep 8, 202612 min read
Classic Motorcycle Insurance: Agreed Value Is the Whole Point
A standard policy settles an old bike at depreciated market value. Classic cover agrees the figure in advance, and the conditions attached are the trade.
Sep 8, 202612 min read
Does Insurance Follow the Car or the Driver? Mostly the Car
Car insurance generally follows the vehicle, and the driver's own policy sits behind it as backup. The exceptions that leave someone personally exposed.
Sep 8, 202611 min read
Does Renters Insurance Cover Appliances? Only When They Break Suddenly
Your appliances are covered against fire and flood damage, never against simply failing. And the landlord's dishwasher flooding your flat is a different claim entirely.
Sep 8, 202612 min read
Does Renters Insurance Cover Bike Theft? Usually, Up to a Sublimit
Your bike is covered wherever it is stolen from, but sublimits and the deductible frequently make the claim pointless. And e-bikes are often excluded entirely.
Sep 8, 202612 min read
Does Renters Insurance Cover Electronics? Yes, at the Wrong Value
Electronics are covered against theft and named perils, but they depreciate faster than anything else you own. The setting that decides what you actually get.
Sep 8, 202612 min read
Does Renters Insurance Cover Fire Damage? Yes, Including the Water
Fire is the peril renters insurance handles best. Smoke without flame, firefighting water, hotel costs, and the liability claim if the fire started with you.
Sep 8, 202612 min read
Does Renters Insurance Cover Mold? The Rule That Decides Every Claim
Renters insurance covers mold only when it grows from a sudden covered leak, and usually caps it near $5,000. The test adjusters apply, and how to pass it.
Sep 8, 202612 min read
Does Renters Insurance Cover Storage Units? Yes, But Only to 10%
Renters insurance follows your belongings into a storage unit, but usually caps off-premises cover at 10% of your contents limit and drops several perils.
Sep 8, 202611 min read