Can I Raise My Deductible to Save on Car Insurance?

Last Updated on October 18, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 18, 2026 How we fact-check

Some insurance experts recommend raising your deductible to save on car insurance. But does raising your deductible actually lower your premium?

In most cases, yes. A higher deductible usually means a lower premium—because you’re agreeing to pay more out of pocket if you file a claim.

Keep reading to learn how deductibles work, how much you can realistically save, and how to decide if a higher deductible is worth the tradeoff.

Raising your comprehensive and/or collision deductible usually lowers your premium, but you’ll pay more out of pocket if you file a claim.
Deductibles typically apply to damage-to-your-car coverages (comprehensive/collision), not liability coverage.
The “right” deductible depends on your emergency savings, claim likelihood, and whether your lender caps how high your deductible can be.
Before you raise your deductible, compare a few options and do a quick break-even check using your real premium savings.

Table Of Contents

Yes, Raising Your Deductible Can Lower Insurance Premiums
How Deductibles Work
How Much Can You Save by Raising Your Deductible?
Should You Raise Your Deductible? Things to Consider
How to Raise Your Deductible
FAQs on Raising Your Deductible to Save on Car Insurance
Final Word
Sources

Yes, Raising Your Deductible Can Lower Insurance Premiums

Most insurers will reduce your premium when you choose a higher deductible on comprehensive and/or collision coverage. Progressive says deductibles typically range from $100 to $2,000 and that $500 is the one its drivers choose most often; $250, $1,000 and $1,500 are also common choices.

The catch is simple: you’ll pay less every month, but you’ll pay more if you ever file a claim. If your premium savings are small—or you’re likely to file claims—the math can work against you.

How Deductibles Work

A deductible is the amount you pay toward a covered claim before your insurer pays the rest (up to your policy limits).

Example: If repairs cost $5,000 and your deductible is $500, you pay $500 and your insurer pays the remaining $4,500.

Deductibles usually apply to comprehensive and collision (the parts of your policy that pay for damage to your vehicle). Liability coverage—damage you cause to others—typically does not have a deductible, though in some states uninsured motorist property damage and personal injury protection can carry one; Progressive lists both among coverages that may have a deductible.

Also, you can often choose separate deductibles: one for collision and one for comprehensive. Some drivers keep comprehensive lower (because glass, hail, and animal claims happen more often) and keep collision higher.

One more important detail: you typically pay a deductible per claim, not per year. Multiple incidents can mean multiple deductibles.

How Much Can You Save by Raising Your Deductible?

Savings vary widely by insurer, state, vehicle, and driver profile. The only way to know your exact savings is to run quotes (or ask your agent) using several deductible options.

Two outside numbers help frame it. The Insurance Information Institute says raising your deductible from $200 to $500 could cut the cost of collision and comprehensive coverage by 15 to 30 percent, and going to $1,000 can save 40 percent or more. And a deductible only touches those two coverages. The NAIC’s September 2026 report puts the 2024 countrywide average premium at $516.39 for collision and $283.15 for comprehensive, against $813.27 for liability, so a higher deductible can only ever trim the first two. As arithmetic only: 30 percent of those two averages combined ($516.39 plus $283.15, or $799.54) is $239.86. Those are nationwide averages for each coverage, not any one driver’s premium, so the figure shows the shape of the saving and nothing about what your own quote will do.

The way to see your own tradeoff is to ask for the same coverage quoted at two or three deductible levels, say $500 and $1,000 on both collision and comprehensive, and compare the annual premiums side by side. Remember that each step up is money you pay yourself every time you file a claim, not once a year.

Quick “break-even” check: Divide the extra deductible by your annual savings—or use our car insurance deductible calculator to compare two real deductible quotes automatically. The result is the number of claim-free months it takes for the savings to cover the extra deductible. If you have a claim before then, you may lose money overall.

And remember: premium savings don’t change the fact that filing claims can lead to higher rates later. A higher deductible can also discourage small claims that might not be worth the long-term premium impact.

Should You Raise Your Deductible? Things to Consider

Raising your deductible can be smart—but only if it fits your finances and your risk tolerance. Here are the biggest things to consider:

Chances of Making a Claim: You pay your comprehensive deductible for things like theft, vandalism, hail, and many windshield claims. You pay your collision deductible after an accident. If you’ve filed multiple claims recently, raising your deductible may not be the best move.

Chances of Anyone in Your Household Filing a Claim: If multiple drivers use the car (especially newer drivers), your odds of filing a claim may be higher. More claims + a higher deductible = more out-of-pocket risk.

Your Ability to Pay the Deductible on Short Notice: A high deductible only helps if you can actually cover it when something happens. If paying $1,000–$1,500 would force you into credit card debt, a lower deductible may be worth the higher premium for peace of mind.

Loan or Lease Requirements: If your vehicle is financed or leased, your lender may require comprehensive and collision—and may also limit how high your deductible can be. Check your paperwork before increasing your deductible.

Collision vs. Comprehensive Coverage Deductibles: Generally, comprehensive coverage deductibles are lower than collision coverage deductibles. Some drivers keep comprehensive lower while raising collision higher to balance savings and affordability.

Not-at-Fault Accidents: Depending on how the claim is handled, you may still pay your deductible upfront and then get reimbursed later. Learn more here: does my deductible apply even if I am not at fault?

What You Actually Save: Sometimes raising your deductible barely changes your premium. Always get the exact dollar savings (per month and per year) before you decide.

Paying Monthly vs. Paying in Full: If your goal is cash flow, raising your deductible can reduce monthly bills. But also consider other strategies like paying your premium in full vs. monthly (some insurers charge installment fees).

How to Raise Your Deductible

Raising your deductible is usually quick and can often be done online. Here’s the safest way to do it:

Step 1: Confirm your loan/lease (if any) allows the higher deductible you want.
Step 2: Ask your insurer (or agent) for pricing at a few deductible levels (ex: $500, $1,000, $1,500).
Step 3: Do the break-even math using your real savings.
Step 4: If you raise the deductible, put the monthly savings into an emergency fund so you can afford it later.

FAQs on Raising Your Deductible to Save on Car Insurance

Does raising my deductible always lower my car insurance premium?

Usually, yes—if you raise the deductible on comprehensive and/or collision coverage, most insurers will lower your premium. However, the savings can be small depending on your state, vehicle, and insurer. Always check the exact dollar savings before making the change.

Which coverages have deductibles?

Most often, deductibles apply to collision and comprehensive coverage (damage to your vehicle). Liability coverage (damage you cause to other people or their property) typically does not have a deductible.

Do I pay my deductible once per year or every time I file a claim?

In most cases, you pay a deductible each time you file a covered claim. If you have two separate incidents (for example, hail damage and then an accident later), you can end up paying two deductibles.

Can I choose different deductibles for collision and comprehensive?

Often, yes. Many drivers keep a lower comprehensive deductible (for things like glass, theft, or weather damage) and a higher collision deductible to lower premiums while still keeping common claims more affordable.

Can my lender or lease agreement stop me from choosing a high deductible?

Yes. If your vehicle is financed or leased, the lender typically requires comprehensive and collision coverage—and may limit how high your deductible can be. Check your loan or lease paperwork before increasing your deductible.

What deductible amount is best?

A good deductible is one you could pay tomorrow without going into debt. If raising your deductible saves you meaningful money and you can afford the higher out-of-pocket cost, it may be worth it. If paying $1,000+ would be stressful, a lower deductible may be the safer choice—even if it costs more each month.

Final Word

Raising your deductible can lower your car insurance premium—but it’s not “free money.” You’re trading a lower monthly bill for a higher out-of-pocket cost when you file a claim.

If you can comfortably afford the higher deductible and you don’t expect to file claims often, increasing your deductible can be a smart way to reduce premiums. If a higher deductible would strain your budget, sticking with a lower deductible may be the safer move.

My advice is to ask for the collision and comprehensive premiums at $500 and at $1,000 side by side, in dollars, and to raise the deductible only if you could pay the higher one out of savings this week. Then move the premium difference into that savings account every month, so the deductible is sitting there when you need it.

Sources

Checked October 18, 2026

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