I'm a little surprised that a policy with a deductible that high meets their requirements. Out of the many, many claims I've submitted the highest I've ever seen was $5k. Insurance is cheap enough that I question the value you're saving here but hey, you do you.
My entirely unsolicited advice is that you should be aware how quick you're going to need to cough up that deductible to get anything done in case you do need to make a claim. Nobody's gonna let you put that on credit the way they would with a typical deductible. They will want cash in hand.
I would submit the actuaries pricing the insurance know the most about how cheap the insurance is relative to the risk. If it is only a few dollars per year, then the probability of loss must be so small that the insurance company is willing to take on the risk for a few dollars per year. Now, if you do not have $25k cash, then certainly go ahead and buy the insurance because you need it. But if you do, then you have already insured yourself.
My entirely unsolicited advice is that you should be aware how quick you're going to need to cough up that deductible to get anything done in case you do need to make a claim. Nobody's gonna let you put that on credit the way they would with a typical deductible. They will want cash in hand.