<prompt> Human: It seems a lot of online literature attempts to use ones ability to pay a deductible as the determining factor for which deductible to choose in auto insurance -- if you dont have enough in savings to cover a 1,000 deductible, you should choose a lower deductible. But what about those who have more than enough money in an emergency fund to cover a 10,000 deductible? Should they choose the highest deductible? I believe the answer is most likely no. One should compare hisher situation to find the right balance.Here is a table for my collision insurance on a 25k car:Deductible 6 Month Premium------100 505250 420500 355750 3151,000 2802,000 2402,500 230Comparing the 2,500 and 1,000 column shows a 6 month premium difference of 50, or 100 per year. This basically means I would have to go 15 years without a claim for the monthly savings of the 2,500 deductible to be the right decision. Choosing a deductible is a little trickier when deciding between 250, 500, and 750... but my point is: make sure you consider this kind of break-even analysis when selecting a deductible. .Hopefully this is helpful -- definitely let me know if you disagree!.this is assuming the claim is 2,500  <response>: I agree. Also - rather than picking a deductible based on emergency fund or savings, I recommend picking it based on the most you are willing to lose. That number will often be much lower than your savings. Your analysis is spot on, though. The premium savings may not be big enough to risk the higher deductible. 