Deductible Impact Calculator Calculator
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Frequently Asked Questions
How does deductible affect insurance premium?
Deductible and premium have an inverse relationship: higher deductibles = lower premiums, lower deductibles = higher premiums. Typically, increasing deductible by $500 reduces premium by 5-10% ($100-$200 annually). Increasing from $500 to $1,000 saves about $150/year, but increases out-of-pocket cost by $500 per claim.
What's a good deductible amount?
A good deductible balances premium savings with risk tolerance. $500-$1,000 is standard for most drivers. Higher deductibles ($1,000-$2,000) save money if you have emergency funds and good driving record. Lower deductibles ($250-$500) cost more but reduce out-of-pocket risk. Choose based on your financial situation and claim history.
Should I increase my deductible?
Increase deductible if: you have emergency funds to cover it, you have a good driving record (few claims), you want to save on premiums, and the savings justify the additional risk. Keep lower deductible if: you have limited savings, frequent claims, or prefer predictable costs. Calculate break-even period to decide.
How much can I save with a higher deductible?
Savings depend on deductible change and premium. Increasing from $500 to $1,000 typically saves $100-$200/year (8-12% of premium). Increasing to $2,000 saves $200-$400/year. Over 5-10 years with one claim, you may save $500-$2,000+ by choosing a higher deductible, assuming you can cover the out-of-pocket cost.
