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Should I Raise My Car Insurance Deductible?

By AutoInsuranceBundle.pro · Published November 6, 2026 · Reviewed November 6, 2026

Short answer: Raising the deductible on collision or comprehensive usually lowers the premium, because you agree to pay more out of pocket after a covered loss. The Insurance Information Institute recommends a higher deductible as one way to reduce what you spend on those optional coverages. The Maryland Insurance Administration says the same thing and adds the caution: pick a deductible you can afford to pay if the car is damaged. A higher deductible is not a discount on liability, and it does not fix a rate increase by itself. Compare the annual premium savings with the extra amount you would owe after one claim. State rules vary.

A deductible is the portion of a covered collision or comprehensive loss you agree to pay first. When premiums rise, raising that number is one of the few levers you control without dropping coverage entirely. It is also easy to set too high and discover that after the next claim.

What people on X are saying

The public conversation treats a higher deductible as a survival tactic when the renewal no longer looks familiar.

@casunprincess said they had to raise a deductible to keep a reasonable price for auto insurance. @StevenJ1279 described a renewal that was up and said it made sense to raise the deductible to the maximum on an older car, because damage that large would mean replacing the car anyway. @Socalcoastin said a California policy had doubled and that they raised the deductible to offset it. @slcinva12 said they keep a higher deductible to lower the rate because they have rarely needed the coverage, and named a current deductible as an example. That number is one household's choice, not a recommended default.

Those posts are useful as a debate about cash flow. They are not a formula for your policy.

If the renewal jumped with no claim at all, also read Why Did My Car Insurance Go Up With No Claims? and Why Car Insurance Went Up With No Accidents. If you are thinking of dropping collision or comprehensive instead of raising the deductible, see Do I Still Need Full Coverage If My Car Is Paid Off?. For a small repair, compare the new deductible with paying out of pocket.

How the tradeoff actually works

The Insurance Information Institute says collision and comprehensive are optional coverages in the sense that states do not require them the way they require liability. On that same page, III recommends taking a higher deductible to reduce what you spend on those coverages, and it tells owners of older cars to do the math before keeping them.

The Maryland Insurance Administration explains the same lever to consumers: raising the deductible generally decreases the premium, and a higher deductible means you pay more money out of pocket for any damage. Maryland tells people to think about what they can afford to pay if the car is disabled by a covered peril. It also notes that comprehensive is often less costly than collision, so some people pick a lower deductible for comprehensive than for collision.

A deductible does not apply to every part of the policy. Liability payments to other people are not reduced by your collision deductible. Uninsured-motorist and medical-payments rules depend on the state and the form. The number you raise is almost always the collision deductible, the comprehensive deductible, or both.

III's price-factor page lists the deductible alongside the limits and optional coverages you choose as something that affects the premium. Changing it is a coverage decision, not a way to erase a surcharge or a general rate filing.

How to decide on a number

1. Ask your insurer, in writing, for the premium at two or three deductible choices using the same liability limits.
2. Subtract the new premium from the current one to see the annual savings.
3. Compare that savings with the extra amount you would pay if you had even one claim this year.
4. Look at savings or an emergency fund, not at the hope that you will not need the car.
5. If the car is older and a large repair would exceed its value, a higher collision deductible may simply match how you already think about the car.
6. Do not raise a deductible to "save" money you would then be unable to pay a shop.
7. After you change it, update any lender if the car is financed. Some loan contracts set a maximum deductible.

:::template Subject: Request for quotes at different collision and comprehensive deductibles

Hello,

I would like to compare deductible options on my auto policy without changing my liability limits. Please send me in writing the premium at my current deductibles and at the next two higher deductible choices for collision and for comprehensive.

Please also confirm that my liability, uninsured motorist and medical payments or personal injury protection coverages would stay the same.

Thank you. :::

Edge cases and common mistakes

Do not confuse a higher deductible with dropping coverage. You still have comprehensive or collision after the change. You have just agreed to absorb more of the first dollars.

Do not assume a $0 glass claim will stay $0 if you raise the comprehensive deductible. Glass rules depend on whether you have a separate glass endorsement.

Do not cut liability limits as a substitute for a deductible decision. That is a different risk, explained in Is State-Minimum Liability Enough?.

More answers built from public X questions are collected at X Answers.

If you want to see how much premium a higher deductible would actually save on the same car and the same limits, a licensed agent can run the options side by side.

FAQ

Should I raise my car insurance deductible?

Raise it if the annual premium savings matter to you and you can pay the new deductible after a loss without hardship. III and the Maryland Insurance Administration both describe this as a common way to lower the price of collision and comprehensive.

Does a higher deductible lower liability premiums?

No. The deductible applies to collision and comprehensive claims for your car, not to the liability limits that pay other people.

What deductible should I choose?

There is no single right number. Maryland says to think about what you can afford after a covered loss. Pick the highest number you could actually write a check for.

Can collision and comprehensive have different deductibles?

Often yes. Maryland notes that some people keep a lower comprehensive deductible than collision deductible because comprehensive is usually less expensive.

Will raising the deductible erase a rate increase?

It can offset part of an increase. It does not remove the reason the increase happened. Ask which factor moved, then decide.

What if I cannot pay the deductible after a crash?

The shop and the insurer will still expect your share. A deductible you cannot pay is not a savings.

Is dropping comprehensive better than raising the deductible?

Dropping the coverage saves more premium and leaves no payout at all after theft, hail or flood. Raising the deductible keeps the coverage and shifts more of the first dollars onto you.

Should I tell my lender if I change the deductible?

Yes, if the car is financed or leased. Some contracts limit how large the deductible can be.

Important: This article is general information, not legal, tax, or insurance advice, and coverage rules vary by state, insurer, and policy. AutoInsuranceBundle.pro is a free, independent insurance comparison and referral service. We are not an insurance company, we do not issue policies, and we do not provide insurance advice. Calls to the number on this site are routed to licensed insurance agents or agencies in our partner network, who may receive compensation. Calling is completely voluntary and there is no obligation to buy. Rates, discounts, and availability vary by carrier, state, and individual eligibility; not all carriers, products, or discounts are available in all states. Calls may be recorded for quality and compliance purposes.