8. Not Understanding Your Deductible
Your deductible is the amount you pay out of pocket before insurance kicks in after a claim, and many drivers pick a deductible amount without really thinking it through. They get blindsided months or years later when they file a claim and realize how much they actually owe upfront before any insurance money arrives.
A lower deductible means a higher premium, and a higher deductible means a lower premium but more financial risk if you need to file a claim unexpectedly. Choose a deductible you could comfortably pay in cash if an accident happened tomorrow, not simply the option that produces the lowest monthly bill on a quote page.
Quick tip: Keep your deductible amount in a dedicated emergency fund so that if you do need to file a claim, the cost never catches you financially off guard.