Car Insurance Raising Your Deductible

Car Insurance Raising Your Deductible

Car Insurance Raising Your Deductible

Car insurance is a necessary expense for all vehicle owners. It provides financial protection in case of accidents, theft, or damage to your car. When purchasing car insurance, one important decision you need to make is choosing your deductible. The deductible is the amount of money you agree to pay out of pocket before your insurance coverage kicks in. Raising your deductible can have both advantages and disadvantages. In this article, we will explore the benefits and drawbacks of raising your car insurance deductible.

The Basics of Car Insurance Deductibles

Before diving into the pros and cons, let’s understand the basics of car insurance deductibles. When you file a claim with your insurance company, you are responsible for paying the deductible amount before they cover the remaining costs. For example, if you have a $500 deductible and your claim is for $2,000, you will pay $500, and the insurance company will cover the remaining $1,500.

The Advantages of Raising Your Deductible

Raising your car insurance deductible can offer several benefits:

  • Lower Premiums: One of the main advantages of raising your deductible is that it can lead to lower monthly or annual premiums. Insurance companies often offer lower rates to policyholders with higher deductibles because they assume you are taking on more financial responsibility in the event of a claim.
  • Cost Savings: By opting for a higher deductible, you can save money in the long run. If you are a safe driver with a low risk of accidents, raising your deductible can be a smart financial move. You may end up paying less in premiums over time than you would if you had a lower deductible.
  • Encourages Responsible Driving: Knowing that you have a higher deductible can encourage you to drive more cautiously and avoid unnecessary risks. This can lead to fewer accidents and claims, which can ultimately help you maintain a clean driving record and potentially qualify for additional discounts.

The Disadvantages of Raising Your Deductible

While raising your car insurance deductible has its advantages, there are also some drawbacks to consider:

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  • Higher Out-of-Pocket Expenses: The most obvious disadvantage of raising your deductible is that you will have to pay more out of pocket in the event of a claim. If you don’t have enough savings to cover the higher deductible, it may put a strain on your finances when an accident occurs.
  • Delayed Repairs: With a higher deductible, you may be more hesitant to file a claim for minor damages. This could result in delayed repairs, which may lead to further damage or safety issues.
  • Less Coverage for Small Claims: If you frequently encounter small incidents, such as minor fender benders or windshield damage, a higher deductible may not be beneficial. You may end up paying for these repairs out of pocket, as they may not exceed your deductible amount.

Is Raising Your Deductible Right for You?

Deciding whether to raise your car insurance deductible depends on your individual circumstances. Here are a few questions to consider:

  • Can you comfortably afford the higher out-of-pocket expenses if an accident occurs?
  • Are you a safe driver with a low risk of accidents?
  • Do you have a good amount of savings to cover the deductible?
  • Do you frequently encounter minor incidents that may not exceed the deductible amount?

By answering these questions, you can assess whether raising your deductible aligns with your financial situation and driving habits.


Raising your car insurance deductible can be a strategic decision to save money on premiums and encourage responsible driving. However, it’s essential to weigh the potential drawbacks, such as higher out-of-pocket expenses and delayed repairs. Consider your financial situation, driving habits, and the likelihood of encountering small incidents before making a decision. Remember, car insurance is all about finding the right balance between coverage and affordability.

Question and Answer

Q: Will raising my car insurance deductible always lead to lower premiums?

A: While raising your deductible can often result in lower premiums, it’s not always guaranteed. Insurance companies consider various factors when determining your premium, including your driving history, location, and the type of vehicle you own. It’s best to consult with your insurance provider to understand how raising your deductible will impact your specific policy.

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