17 Mistakes First-Time Car Owners Make When Buying Insurance

6. Not Understanding How Their Deductible Works

Many first-time buyers pick the lowest possible deductible without understanding it actually raises their monthly premium, or pick the highest deductible purely to save money without considering whether they could realistically afford that amount out of pocket after an accident. Understanding this trade-off clearly is essential before choosing a number.

A first-time buyer without much savings built up yet is especially vulnerable to choosing a deductible that looks attractive on a monthly quote but would be genuinely difficult to pay out of pocket after an actual accident.

Quick tip: Choose a deductible amount you could realistically pay in cash today, not simply the number that produces the lowest monthly premium on a quote page.