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

Photo (cc) by State Farm

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

According to a new report from InsuranceQuotes.com, 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, InsuranceQuotes.com 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. InsuranceQuotes.com 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 InsuranceQuotes.com:

“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, InsuranceQuotes.com. “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.

InsuranceQuotes.com 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.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
7 Secret Departments of Amazon You Should Know About
7 Secret Departments of Amazon You Should Know About

These little-known sections of Amazon are hidden gems for deal-seekers and impulse shoppers alike.

10 Things That Really Are Free on Amazon
10 Things That Really Are Free on Amazon

These freebies are available to anyone — no Prime membership necessary.

9 Indestructible Products That Are Worth the Price
9 Indestructible Products That Are Worth the Price

If you’re willing to pay a little more for these products, you may never have to shop for another again.

3 Reasons You Can’t Rely on Medicare Alone
3 Reasons You Can’t Rely on Medicare Alone

Counting on Medicare to cover health care costs can jeopardize your retirement plans.

8 Things I Always Buy at Costco
8 Things I Always Buy at Costco

From bacon to birthday cakes, here are my favorite deals at the popular warehouse store.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

14 Things That Are ‘Free’ With Medicare
14 Things That Are ‘Free’ With Medicare

These services could save you money and help prevent costly health problems.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

10 Things You Should Never Do With Bleach
10 Things You Should Never Do With Bleach

Does the pandemic have you reaching for bleach more than ever before? Learn the ins and outs of using this powerful disinfectant.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.