Here’s How Much You’ll Save by Raising Your Car Insurance Deductible From $500 to $1,000

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A new survey shows that depending on where you live, you can save big bucks by increasing your deductible.

If you’re willing to give up some car insurance coverage, you might pocket hundreds in savings.

According to a new report from, on average, consumers can save 9 percent in premium costs by raising their deductible from $500 to $1,000.

But the savings depend on your demographics and, more so, where you live. For instance, Massachusetts consumers could pocket 19.2 percent in savings from increasing their deductible to $1,000, said. But Michigan drivers will likely save just 4 percent for the same change in deductible.

A car insurance deductible is the amount of money you pay on an insurance claim before your insurance coverage kicks in. said:

A typical auto insurance policy is comprised of three parts: liability, collision and comprehensive. There is no deductible on the liability portion of your policy, which is mandatory in nearly all states and pays to fix another driver’s vehicle when you’re at fault in an accident.

But there are separate deductibles on collision and comprehensive insurance.

According to the survey, on average, here’s what consumers across the U.S. can save by raising their car insurance deductibles:

  • 7 percent if you increase your deductible from $250 to $500.
  • 9 percent if you raise your deductible from $500 to $1,000.
  • 16 percent by hiking your deductible from $500 to $2,000.

The best states for higher deductible savings are: Kansas, Massachusetts, North Dakota, South Dakota and Wyoming. If you live in Florida, Louisiana or Michigan, the savings aren’t nearly as good. According to

“It’s very interesting to see that in some states raising your deductible gives you a huge savings and in others it barely moves the needle,” said Laura Adams, senior analyst, “In some states, you can save hundreds of dollars each year by signing up for a higher deductible, but in others, the reward is so small that it doesn’t make sense to risk the higher deductible. This is a good reminder that doing a little research and knowing what’s available to you can really pay off in the long run.”

Remember, raising your deductible means you assume more risk up front. If you choose to raise your deductible, it’s a good idea to bank those premium savings until you reach the amount of your deductible. So if you have to file a claim, you have the money on hand to pay the out-of-pocket costs. recommends meeting with an independent insurance agent to run certain scenarios and look at potential savings before you decide to raise your deductible. You can also simply use an online shopping tool, like ours, to see the results of different deductibles.

How do you decide how high your car insurance deductible should be? Share your comments below or on our Facebook page.

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