Choosing your deductible
The premium saving is certain. The cost only arrives on a bad day.
Your deductible is what you pay toward a covered claim before the insurer pays. Raising it lowers your premium and increases what you're exposed to when something happens.
The trade is genuine, and the right answer depends on one thing more than any other.
Where it applies
Collision and comprehensive carry deductibles. Liability generally doesn't — when you damage someone else's property, your insurer pays from the first dollar up to your limit.
Some states also apply deductibles to uninsured motorist property damage or personal injury protection. Check your declarations page rather than assuming.
The question that decides it
Could you pay the deductible tomorrow, without borrowing, if your car were damaged today?
If the honest answer is no, the deductible is too high regardless of the premium saving. A deductible you can't fund turns a covered claim into a problem you can't solve.
How to evaluate the trade
Take the annual premium saving from raising the deductible and divide the additional exposure by it. That tells you how many claim-free years it takes for the saving to cover the extra you'd pay at claim time.
If that's a short period, raising it is usually sensible. If it's long, you're taking on real exposure for a small saving.
Points worth knowing
- Collision and comprehensive deductibles are set separately and don't have to match
- Glass claims sometimes carry a separate, lower deductible or none at all
- Some insurers reduce your deductible over claim-free years — ask whether that's available
- A deductible applies per claim, not per year
- Changing it mid-term is usually possible, and takes effect going forward
When a claim isn't worth filing
If repair costs only slightly exceed your deductible, the recovery may be small enough that a claim on your record costs more over time than paying directly.
Get an estimate first, then decide. You can report an incident without filing a claim, and it's worth asking your insurer how each is recorded.
Common questions
The highest one you could genuinely pay tomorrow without borrowing. Beyond that, the premium saving isn't worth an exposure you can't fund.
Generally no. Liability pays from the first dollar up to your limit. Deductibles apply to collision and comprehensive, and sometimes to other coverages depending on the state.
If repairs only slightly exceed the deductible, a claim on your record can cost more over time than paying directly. Get an estimate first, and ask how reporting versus filing is recorded.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.