Is It Possible to Increase My Car Insurance Deductible
Yes, you can raise your deductible whenever you want, and it will lower what you pay for coverage right away.
What changes when you raise your deductible
- Your premium drops A higher deductible means you're taking on more risk, so the insurer charges you less. The size of the drop depends on your insurer, so ask for a quote at a few different deductible levels before deciding.
- Your out-of-pocket cost rises If you file a claim, you pay the higher deductible amount before coverage kicks in. Make sure you have that amount set aside in savings, since it's due when the repair happens, not later.
- It only affects certain coverage Liability coverage doesn't have a deductible, so this change only touches the part of your policy that covers your own vehicle. Check your declarations page to see which deductible you're actually changing.
- You can change it back Nothing about raising your deductible is permanent. If your savings feel too thin after a year, call your insurer and lower it again at your next renewal or sooner.
- Some insurers set limits Not every company offers the same range of deductible options, and some cap how high you can go. Ask your insurer directly what choices are available on your policy.
Raising a deductible after years of paying the same rate
A driver in her early 80s had carried the same deductible for over twenty years without ever filing a claim. Her renewal had crept up again, and she wanted to find a way to bring the cost down without dropping any coverage. She called her insurer and asked what her premium would look like at a higher deductible, then asked the same question at two other levels so she could compare.
She picked the middle option, enough to lower her premium noticeably but not so high that she couldn't cover it from savings if she ever needed a repair. She set that amount aside in a separate account so it would be ready if a claim ever came up. A year later she still hadn't filed a claim, her premium had stayed lower, and she felt no less protected than before. She kept the new deductible going forward and reviewed it again at her next renewal.
Compare quotes at your new deductible to see exactly how much raising it saves you.
How do I know what deductible amount is right for me?
The right deductible is the highest amount you could pay out of pocket without it being a real hardship, not the highest amount an insurer will let you pick. Start by looking at what you actually have in savings that you could use for a car repair without touching money set aside for other things.
Then ask for quotes at a few different deductible levels and compare how much each one saves you against that number. If the premium savings are small compared to the jump in what you'd owe after a claim, a lower deductible may make more sense. If the savings are meaningful and you have the cushion to cover it, a higher deductible can be a steady way to keep your costs down year after year.
A higher deductible only pays off if you actually have that money set aside, not just on paper.
Will raising my deductible affect my coverage if I file a claim?
No, your coverage limits stay the same no matter what deductible you choose. The deductible only changes how much you pay before that coverage starts, not how much protection you have overall. Check your policy details to confirm your coverage limits haven't shifted for any other reason at renewal.
Can I have different deductibles for comprehensive and collision?
Yes, most insurers let you set these separately rather than requiring the same amount for both. This matters because comprehensive claims, like weather or theft damage, often cost less to repair than collision claims. Ask your insurer whether splitting them could save you more than raising both equally.
What happens to my deductible if I switch insurers?
Your deductible doesn't carry over automatically, since each insurer sets their own options and starting point. When you get a new quote, you'll choose a deductible fresh, so compare it carefully against what you currently have. Check that the new policy's deductible and premium together actually save you money, not just one or the other.
