Your deductible is the amount you agree to pay out of pocket before your insurance covers the rest of a claim. A lower deductible feels reassuring, but it usually comes with a higher premium. If you rarely file claims, you may be paying extra every month for protection you seldom use.

Ask your insurer to show you how your premium would change at a few different deductible levels. Ask about both your collision and comprehensive deductibles, since they can be set separately. Sometimes the difference is meaningful, and sometimes it is small enough that keeping the lower deductible is the better choice. Seeing the actual figures side by side helps you decide.

The key question is whether you could comfortably cover the higher deductible if you had an accident tomorrow. If paying it would mean missing rent or running up a credit card, the savings may not be worth the risk. Building an emergency fund first can make a higher deductible a more realistic option later on.