120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on October 16, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 16, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
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25 years teaching risk management and insurance course
Former commercial lines underwriter
David is the managing director of the Brantley Risk and Insurance Center. He has been quoted by The New York Times and CNN.
){kind=small}
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Updated
Your deductible affects what you pay in car insurance premiums. If your goal is to keep your monthly payments as low as possible, you may choose a high-deductible policy. After all, you’re a careful driver, and it’s unlikely that you’ll ever have to file a claim.
The truth is that accidents do happen, often when you least expect them. If you do get in an accident with a high-deductible car insurance policy, you’ll have to come up with a lot of money up front. So, before you commit to a high-deductible policy, consult an insurance agent or use Insurify’s car insurance comparison tool to shop around and explore different car insurance quotes.
Most auto insurance deductibles range from $500 to $1,000. Any deductible over that amount could be considered a high deductible.
Increasing your deductible from $500 to $1,000 could reduce your premium by 8%, according to Insurify data.
A higher car insurance deductible can make sense if you have a claims-free history, lower accident risk, and savings to cover any out-of-pocket expenses if you get into a crash.
High-deductible car insurance isn’t for everyone. If you’ve had frequent past claims or live in a high-risk area where weather damage or theft occurs often, then it’s better to have a cheaper deductible.
But claims-free drivers who live in areas with mild weather patterns and low car theft rates can consider high-deductible car insurance if they believe their risk of filing a claim is lower. In this case, a high deductible can keep your car insurance premiums cheap and let you put your extra money aside for savings.
Comparison shopping with Insurify could save you $1,100 annually
A deductible of more than $1,000 is usually considered a high car insurance deductible. The deductible is the amount you have to pay out of pocket for a collision or comprehensive claim before your car insurance coverage kicks in and covers the remaining amount up to your policy limits.[1]
High deductibles are usually around $1,000 to $2,000, but choosing a comprehensive or collision deductible this expensive can help lower your car insurance premiums.
Generally, the lower your deductible, the higher your auto insurance costs, and vice versa. If you want to pay less out of pocket when you file a claim, choose a deductible of $500 or less. If you want to pay lower monthly, quarterly, or annual car insurance premiums, then choose a high deductible of $1,000 or more.
Some insurance companies offer vanishing deductibles — also called disappearing deductibles — which are programs that reduce your collision or comprehensive deductible every policy term you go without filing a claim.[2] For example, if you start with a $500 deductible and your auto insurer reduces it by $100 for every year you don’t file a claim, your deductible will be $300 after two claim-free years.
Insurance companies typically limit how much your deductible can decrease, but some auto insurers will let your deductible go to $0 under a vanishing deductible program.
If you have a car insurance policy with a deductible and get into an accident, you’ll need to file a claim with your auto insurance company. Upon approval, you won’t have to send your car insurance company a check in the mail or give it your credit card number.
Instead, either your insurer will subtract your deductible amount from the approved payout of your claim, or you’ll pay the repair shop your deductible amount and your insurance company will cover the remainder.[3]
Let’s say car repairs after an approved claim cost $8,000 and your deductible is $1,000. Your auto insurance company will issue you a check for $7,000, or you’ll pay the repair shop $1,000 and your insurer covers the rest.
Choosing a $1,000 deductible instead of $500 could save you 8% each month, Insurify data shows. The following table shows how your deductible choice can affect your average annual and monthly car insurance premiums.
Deductible | Average Monthly Rate | Average Annual Rate | Annual Savings vs. $500 |
|---|---|---|---|
| $250 | $210 | $2,522 | N/A |
| $500 | $208 | $2,500 | $0 |
| $1,000 | $186 | $2,232 | $268 |
| $2,000 | $179 | $2,143 | $357 |
When you buy an auto insurance policy, you need to choose deductibles for coverages like collision and comprehensive. Here are some guidelines to help you determine what your deductible should be:
Ask yourself if you can afford the deductible. Calculate whether you can comfortably cover the deductible if you file a claim. If you have limited emergency savings, then a cheaper deductible may be the better option.
Balance the deductible with the premiums. Do the math and figure out how much you’d save in premium costs with a higher deductible versus a cheaper deductible. The goal is to find a balance between affordable premiums and affordable deductibles.
Think about your claims record. If you’ve had previous at-fault accidents or live in an area where many car insurance losses occur, then you should consider a lower deductible.
Consider your car’s value. Expensive vehicles may mean more expensive repairs and more expensive premiums. If you can afford a more expensive deductible for a high-value vehicle, it may help reduce your auto insurance premiums.
If you have collision and comprehensive coverage on your auto policy, they’ll likely have two separate deductibles that you have to pay each time you file a claim. You’ll pay a deductible for comprehensive, collision, and sometimes glass-coverage claims.
For example, imagine you need to file a comprehensive coverage claim because a windstorm caused tree branches to fall on and dent your vehicle. You’ll pay your deductible to the repair shop you took your car to, or your insurance company will deduct it from your payout.
In the case of an at-fault accident, your liability coverage pays for the other parties’ injuries and damages, and you’ll never pay a deductible for that.
Before choosing a higher deductible, it’s a good idea to calculate how long it’ll take for your premium savings to offset the higher out-of-pocket cost in case of an accident.
Here’s one simple calculation:
Subtract your current deductible from the higher one you’re considering: $1,000 – $500 = $500
Divide the result by the annual premium savings you’ll get from the higher deductible: $500 ÷ $200 = 2.5
In this scenario, you’ll break even after two and a half years with the higher deductible, provided you don’t have a claim in that time. If your best claim-free streak is longer, the higher deductible may save you money.
But a claim could wipe out those savings, especially if you have to pay the deductible with a credit card. The higher interest rate could easily wipe out the savings from the higher deductible.
Most insurers will let you pick different deductibles for collision and comprehensive, although it’s common to have the same amount for each type of coverage. But situations can arise when different amounts make sense.
For example, if you live in an area with few weather risks (which comprehensive insurance covers) but high accident rates (which collision insurance covers), you may choose a higher comprehensive deductible and a lower collision one.
Before increasing your deductible, check out the advantages and disadvantages of a high deductible.
Lower premiums: Generally, the higher your deductible, the less you pay for car insurance.
May never need to pay: If you never file a claim, then you may never have to worry about paying a high deductible.
Customize your deductibles according to your risks: Savings from a high deductible for coverage you may need less (like comprehensive) could help you choose a lower deductible for higher risks (like collision).
Higher out-of-pocket costs: You’ll have to pay more out of pocket if you file a claim.
More financial responsibility: If car repairs cost $1,500 and your deductible is $1,000, you’re paying the majority of the cost before insurance kicks in.
Your lender may require a lower deductible: Financing or leasing changes the game. Most lenders require deductibles of $1,000 or less.
If you’re considering a high-deductible car insurance policy, you may be looking for ways to save on insurance. Here are some tips for keeping costs low:
Plenty of car insurance companies offer long lists of discounts that drivers can qualify for to get cheaper insurance. Discounts like safe driver, good student, continuous coverage, automatic payments, and paperless billing are common among auto insurers.
Many states allow insurance companies to look at drivers’ credit histories to determine rates. Check your credit score and take the time to improve it to good or excellent for more favorable auto insurance rates.
Car insurance companies often offer discounts when you buy an auto insurance policy with another product, like homeowners insurance or renters insurance. If you can, buy your policies from one company for a bundling discount.
One of the best ways to save on car insurance is to compare quotes from multiple insurers at once to find the company that offers you the best rates for the coverage you need. You may have to compare more than three quotes to find it, but you can use a comparison tool like Insurify to help you.
Check out Insurify’s guide to car insurance for first-time drivers, and read the answers to common high-deductible car insurance questions below.
The most common deductible amount is $500, according to some national car insurance companies. But you should carefully consider your personal situation and budget when choosing your deductibles because what’s best for someone else may not be the best for you.
Raising your deductible from $200 to $500 could decrease your premiums by 15% to 30%, according to the Insurance Information Institute. So if you had a monthly premium of $170 and a $200 deductible, you could potentially take $25 to $51 off your monthly premium by raising your deductible to $500.
And if you raise your deductible to $1,000, it could save 40% or more, which would be $68 off your monthly premium.
Although amounts can vary by company, many insurers allow deductibles up to $2,000. That said, $500 is the most common deductible amount.
You can usually change your car insurance deductible whenever you like. You don’t have to wait for your policy renewal period. But some insurance companies may wait until your next policy period to begin applying your new deductible.
Your deductible is the portion of repair costs you’re responsible for, so you have to pay it one way or another when you file a claim. When you can’t pay your deductible, you can try working out a payment plan with the repair shop, tapping your emergency fund, or borrowing from family or friends.
Yes. If you’re at fault for a car accident, you’ll pay a deductible if you’re tapping your collision, comprehensive, or personal injury protection coverage.
You should consider your driving record when choosing your deductible. If you have a tendency to back into objects, rear-end other vehicles, or cause accidents, then you might choose a lower deductible. But if you’re a relatively safe driver and have a clean record, then you can choose a higher deductible because you may not file claims as often, if at all.
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
25 years teaching risk management and insurance course
Former commercial lines underwriter
David is the managing director of the Brantley Risk and Insurance Center. He has been quoted by The New York Times and CNN.
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
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