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Raising your deductible: when it makes sense
How to work out whether a higher deductible pays for itself.
A higher collision and comprehensive deductible lowers your premium. It makes sense when the savings add up quickly and you could comfortably pay the higher deductible tomorrow.
The break-even test
- Get the premium at two deductible levels, such as $500 and $1,000.
- Find the yearly savings.
- Divide the extra out-of-pocket amount ($500) by the yearly savings.
- If you'd break even in a few claim-free years, and you have the cash set aside, the higher deductible may be worth it.
Try the calculator
Our deductible calculator does the math for you.
Educational information, not insurance advice. Discounts and rules vary by state and insurer; ask your insurer about your policy. Secure Motors is not an insurer, agent or broker and takes no commissions.