• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Invest with Steve!

Financial Planner | Financial Advisor | La Verne, CA |San Dimas, CA|Glendora, CA| Claremont, CA | West Covina, CA| Covina, CA| Brea, CA| Pomona, CA | Upland, CA Reh Wealth Advisors

Stephen Reh CFA® MBA CFP®

I love helping people reach their financial and investment goals. Call me today at 909-518-2134 to setup a free no obligation 1 hour consultation.

NAPFA-Registered Financial Advisor
  • Home
  • Ideal Clients
    • Financial Advisor For Business Owners
    • Financial Advisor For Corporate Executives
    • Financial Advisor For Families
  • Services
    • Investment Management
    • Retirement Planning and Cash Flow Analysis
    • Net Worth Planning and Analysis
    • Estate and Gift Planning
    • Property and Casualty Insurance Review
    • Education Planning
    • Tax Planning
  • Our Articles / Blog
  • About Steve! Your Fee Only Financial Advisor
    • Reh Wealth Advisors LLC Privacy Policy
  • Online Account Access
  • Contact Us

Auto Insurance, Homeowners Insurance, and Medical Insurance – Save Money by Self Insuring with a Higher Deductible

May 19, 2015 By Stephen Reh MBA CFA® CFP®

Saving Money Through Higher Deductibles

Have you saved up enough money for an emergency fund?  Have a liquid investment account that you could tap if you needed a couple grand? Consider saving yourself money by choosing a higher deductible automobile or homeowners policy and lowering your premium.  I would argue for most people that can stomach the idea of a higher deductible, they will realize true savings over their lifetime.  The same principles apply to business owners and self employed people when deciding their health plan.

I prefer to call the concept “self insuring”.  By selecting a higher deductible (amount you have to pay out if their is at at fault claim), you save money on your premium every year.  However, should you need to make a claim, you will have to pay more out of pocket for the repair.  In general, you need to be making claims every 2-3 years in order for the lower deductible to be a better deal.  Further, if you are making claims that often and they are relatively minor claims (backed into a pole at the super market), your premium rates are likely increasing because of the claims.

By taking the risk of the first $1k or $2k in out of pocket claims (deductible) vs the typical $500,  you will likely save a decent amount of money over the long haul.  So for that extra $500 to $1,500 of risk, you are being compensated for taking the risk away from the insurance company.  The most important part of your insurance, which is protecting you against catastrophic loss that could impact your ability to reach your goals and retire, remains protected.

For those who have control of their medical insurance options,  the same principles apply to medical insurance, with a high deductible plan will save you in premiums as you are self-insuring the first few thousand of claims and in most years you will benefit from the savings.   You also retain disaster coverage as your insurance starts to pick up the bill after the deductible is reached and most of these plans have a max out of pocket clause.

So when you review your insurance coverage, consider the deductible vs the potential savings from a lower premium.

** Please note, I do not sell property and casualty insurance.  As part of my fee-only service, I provide property and casualty insurance reviews as part of their financial/investment plans to ensure my clients are properly and efficiently protected.

**Information in this post is for educational purposes, please contact us for specific advice on your individual situation to determine what is appropriate. 

If you enjoyed the article consider sharing it:
Tweet

Filed Under: Articles, Property and Casualty Insurance

About Stephen Reh MBA CFA® CFP®

I am Steve Reh the founder of Invest with Steve and Reh Wealth Advisors LLC. Thank you for visiting my website.

Contact me to setup your free, no obligation, 1 hour consultation.

Primary Sidebar

Our Articles

  • Articles
    • College Savings
      • 529 Plans
    • Estate Planning
    • Financial Planning
    • Investments
      • IRA Rollovers
      • Market – Economic Analysis
    • Investor Protection
    • Mortgage
    • Property and Casualty Insurance
    • Retirement Plans – 401ks
    • Tax Planning
    • Uncategorized

    Contact Steve For Your Free, No Obligation, 1 hour Meeting.

    Your Name (required)

    Your Email (required)

    Subject

    Your Message

    Our Most Recent Financial Articles

    2022 May Stock Market Drop

    The S&P500 has not hit the “20%” mark for a market correction but we have hit 14% drop since our last market high for the year. I wanted to provide you some analysis and commentary but ultimately we will want to remain patient and not attempt to time the stock market. Early in the Year […]

    SBA EIDL Updates

    THE SBA HAS RELEASED THE FOLLOWING UPDATES (PLEASE NOTE ALL THAT FOLLOWS IS FROM THE SBA). On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). […]

    Small Business Help – EIDL and PPP

    There are two programs for small business owners, the EIDL loan/grant and the PPP (payment protection plan) loan. Both offer assistance for small businesses. Information is coming out rapidly and the details do seem to be changing slightly as it comes out. EIDL – Economic Injury Disaster Loan This loan is taken out directly from […]

    View Stephen Reh,CFA® MBA CFP®'s profile on LinkedIn

    Footer

    Invest With Steve!

    Stephen Reh CFA® MBA CFP®
    Reh Wealth Advisors LLC
    466 W Arrow Hwy Unit K
    San Dimas, CA 91773
    Mobile:909.518.2134
    Office:909.962.8023
    steve@investwithsteve.com


    Connect with us!

    • Email
    • Facebook
    • Google+
    • LinkedIn
    • Twitter


    Our FInancial Articles/Blog

    Financial Links

    Contact Us
    • Home
    • Ideal Clients
    • Services
    • Our Articles / Blog
    • About Steve! Your Fee Only Financial Advisor
    • Online Account Access
    • Contact Us

    Reh Wealth Advisors LLC is a registered investment advisor offering advisory services in the State of California and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Reh Wealth Advisors LLC in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption. All written content on this site is for information purposes only. Opinions expressed herein are solely those of Reh Wealth Advisors LLC unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.


    Anyone with facing challenges with accessibility of this website, please call us at 909-962-8023 or email us at steve@investwithsteve.com and we will provide accommodations for our services to you. We have a tool bar to increase contrast and to change text size. We have attempted to make our site as accessible as possible.