Is It Possible to Increase My Car Insurance Deductible
Yes, you can raise your deductible whenever you want, and for someone in your position right now, it may be worth a closer look.
Your deductible is a choice you can revisit anytime
A deductible is simply the amount you agree to pay before your insurer pays the rest of a claim. Insurers let you choose that number because it shifts risk between you and them. A higher deductible means you're taking on more of the small stuff yourself, so the insurer charges you less for the policy. Nothing about this is fixed once you sign up. You can call and change it whenever your situation changes, including now.
The reason it lowers your premium is that insurers price policies around how often they expect to pay out. A low deductible means they're likely to pay on even minor fender benders, so they charge more to cover that. Raise the deductible and you're telling them you'll handle the small claims yourself, so they adjust the price down. The tradeoff is simple. Lower monthly cost, but more money due from you if something happens.
Where this gets personal is in what you can actually afford if a claim comes in. If money is tight right now, or if you're still sorting out what accounts and cash you have access to, a higher deductible sounds good on paper but could be a problem the day you need to pay it. If you have savings set aside and a clear picture of your finances, raising it is usually safe and often smart.
One thing that varies by insurer and by state is how deductible changes apply across different coverages, like collision versus comprehensive, and whether there's a minimum or maximum you can choose. Check your policy documents or ask your agent directly what range you can pick from and whether both cars on a shared policy need matching deductibles or can differ.
What to look at before you raise it
- Check your savings first Make sure you could pay the new deductible amount in cash if a claim happened tomorrow. If not, raising it may save money you don't actually have available later.
- Look at both cars separately If you're keeping two cars but one is rarely driven, you might raise the deductible more on that one than on the car you use daily.
- Ask about combined limits Some insurers let you set one deductible that applies to multiple coverages, others let you set them separately. Ask which applies to your policy.
- Confirm the new premium Before you commit, get the new premium amount confirmed, not just an estimate. Small differences add up over a year of payments.
- Review the whole policy at once Since you're already making changes, this is a good moment to check who's listed as a driver and whether names or coverage still match your situation.
How much will raising my deductible actually save me?
The exact amount depends on your insurer, your driving history, and the car itself, so there's no single figure that applies to everyone. What's true across the board is that the savings come from the insurer expecting to pay less often, since you're covering more of the smaller claims yourself.
The best way to know your real number is to ask your insurer directly for a side by side comparison at your current deductible and at a higher one. Most will give you this instantly over the phone or through your online account. Compare that savings against how much more you'd owe out of pocket if you filed a claim, and decide based on which gap feels more manageable given what you have set aside right now.
Once you know what deductible fits your situation, compare quotes to see which insurer prices it best for you.
Deciding whether to raise your deductible now
If you do
Your monthly premium drops right away, which helps if you're managing a tighter budget while sorting out other finances. If you do need to file a claim, you'll owe more upfront before coverage kicks in, so you'll want that amount sitting in savings and ready to go.
If you don't
Your premium stays the same, and you keep the lower out of pocket cost if something happens to either car. You lose the chance at immediate savings, which matters if you're trying to free up monthly cash right now, but you avoid any risk of being caught short after a claim.
A car that's barely driven anymore
Say your spouse's car is still sitting in the driveway, insured the same way it always was, but nobody's driven it in months. You're not ready to sell it yet, but paying full price to insure it at the old deductible doesn't feel right either. You call the insurer, explain the car is driven rarely now, and ask what your options are.
They walk you through raising the deductible on that car specifically, since it's a separate line on the policy from your own car. You check your savings and confirm you could cover the higher amount if something happened, even though the car mostly just sits there. You make the change, the premium drops, and you keep the car insured without paying for coverage levels that made sense when it was driven every day. A few months later, when you're ready to decide whether to sell it, you've already got one less thing to untangle.
Can I have different deductibles for two cars on one policy?
Yes, in most cases each car on a shared policy can carry its own deductible. This is common when one car is driven far less than the other, like a spouse's car sitting unused. Ask your insurer to confirm this is how your policy is structured, since a few group deductibles across all vehicles instead. If yours does, you may need to handle the rarely driven car as a separate decision, including whether to keep it insured at all.
Will raising my deductible affect my coverage if I'm not driving the car much?
No, the deductible only affects what you pay if you file a claim, not whether the car is covered. A car that's rarely driven is still fully covered under your policy terms either way. What changes is simply your share of the cost if something happens, like a break in or weather damage, even while parked. If you're considering storage only coverage instead, ask your insurer how that's different from just raising the deductible.
Should I lower my deductible back down later if my situation changes?
Yes, you can lower it again anytime, just as easily as you raised it. This is worth revisiting once you have a clearer financial picture or once you've decided what to do with a second car. There's no penalty for changing it more than once. The only thing to check is whether your insurer has any waiting period between changes, since a few do limit how often you can adjust it.
