How much should my auto insurance deductible be?
Asked by: Dr. Hudson Bartoletti V | Last update: December 11, 2025Score: 4.5/5 (71 votes)
How high should my deductible be for car insurance?
$500 is the most common car insurance deductible. Not every type of car insurance coverage uses a deductible. A higher car deductible can lower your insurance premium. You pick your deductible when buying insurance.
Is it better to have a $500 deductible or $1000?
Generally speaking, yes, a higher deductible is the better choice long term. Especially if you have a good driving history.
Is a $2000 deductible good for car insurance?
A $2000 deductible might tip you over into bankruptcy but probably not if you come to the frugal forum. The insurance company knows the odds and they will cover that risk for you profitably. If you can afford to carry the risk, my opinion is that you should save the premium.
What is a good amount for a deductible?
Standard homeowners insurance deductibles often range from $500 to $2,000, although they can be higher or lower depending on your insurance carrier and budget. With a standard flat deductible, the amount you pay out of pocket typically won't change over time unless you modify your home insurance policy.
CAR INSURANCE DEDUCTIBLE EXPLAINED
What deductible is too high?
In 2023, health insurance plans with deductibles over $1,500 for an individual and $3,000 for a family are considered high-deductible plans.
What is a good deductible for comprehensive?
Common deductible amounts also include $250, $1000, and $2000, according to WalletHub. You can also select separate comprehensive and collision coverage deductibles. For example, you could have a $1000 collision and a $500 comprehensive policy deductible or vice versa.
Which deductible should I choose?
Key takeaways. Low deductibles are best when an illness or injury requires extensive medical care. High-deductible plans offer more manageable premiums and access to HSAs. HSAs offer a trio of tax benefits and can be a source of retirement income.
What is the disadvantage of having a higher deductible car insurance?
Greater financial responsibility for claims: With a higher deductible, you will pay more out of pocket for repairs as part of a covered claim, so you need to make sure that you're able to afford the higher costs.
Do I get my deductible back if I'm not at fault?
Yes, if you have to pay your deductible and you were not at fault, you may be able to get it back from the at-fault driver's insurance company. This is called subrogation. Your insurance company will pursue the at-fault driver's insurance company to recover the money paid for the damages, including your deductible.
Will raising my deductible lower my car insurance?
When you're choosing a deductible, keep in mind that you may be more or less comfortable with higher out-of-pocket costs vs monthly costs. A high deductible will lower your overall insurance rate, however it will increase your out-of-pocket costs if you file a claim.
Is a credit score check required to get auto insurance?
Most insurers use credit checks to create a credit-based insurance score to help set your rate. Some insurers provide auto insurance with no credit check, which might seem appealing if you have a poor credit history.
Is $2000 a high deductible?
In an HDHP, the deductible is $1,400 or more for individuals and $2,800 or more for families. For example: If you have an HDHP with a $2,000 deductible, you must pay the first $2,000 of your medical bills in a year.
Do you have to pay deductible if not your fault?
If your coverage includes a Direct Compensation and Property Damage (DCPD) deductible, you must still pay the DCPD deductible even if you are not at fault.
Is it better to have high or low deductible?
Individuals. You would most likely benefit from a low-deductible plan if you're older, have a chronic condition, or simply receive frequent medical care. Having an LDHP can save you money if you have costly health issues or a larger family.
What is a good bodily injury coverage?
California's minimum bodily injury liability coverage is $15,000 per person and $30,000 per accident (usually written as $15,000/$30,000). California's minimum property damage liability coverage is $5,000.
What should I set my car insurance deductible at?
You pay a deductible each time you file a claim with your auto insurance coverage. Most drivers choose a $500 auto insurance deductible, but policies with higher deductibles cost less. Choosing a plan with a higher deductible to get a lower insurance rate means higher out-of-pocket costs when filing a claim.
Do you need comprehensive insurance?
If your vehicle's cash value is relatively low and you have a higher deductible, for example, it may not be worthwhile to carry comprehensive coverage. On the other hand, it may be worthwhile if your vehicle has a higher cash value, or you cannot afford the cost to repair or replace your vehicle out of pocket.
Is it better to have a $500 or $1000 deductible?
Since a lower deductible equates to more coverage, you'll have to pay more in your monthly premiums to balance out this increased coverage. A survey commissioned by InsuraQuotes found that an increase in deductible from $500 to $1,000 had an average of 8-10% reduction in premium costs.
What is a reasonable deductible for car insurance?
The average auto insurance deductible is $500, but you could also select amounts like $250, $1,000 or $2,000; this will also affect your policy's premium. Choosing a higher deductible to get a lower premium may seem like an easy way to pay less for car insurance, but it's not always the best decision.
Is a $0 deductible good?
Health insurance with zero deductible or a low deductible is best if you expect to need major medical care in the upcoming year. Even though you'll pay more for the plan, it will help you save overall because the full benefits begin right away.
What is the main disadvantage of choosing a high deductible?
The primary disadvantages of a high-deductible health plan include the high out-of-pocket costs and the potential reluctance to seek medical care due to upfront expenses. While HDHPs have lower premiums, individuals may face financial strain if they need medical services before meeting the deductible.
Is it better to have collision or comprehensive?
If your car is damaged in a road collision with another car or object and you're at fault, only your collision coverage can help pay to repair it. Only comprehensive coverage covers losses caused by contact with animals, civil disturbances, fires, natural disasters, theft, and vandalism.
Should I increase my auto insurance deductible?
Typically, the higher the car insurance deductible you are willing to accept, the cheaper the premiums will be, as you are assuming more financial responsibility in the event of a claim.
Is a $3000 deductible high?
The IRS defines high-deductible health plans for 2023 as: Individual plans with deductibles of at least $1,500. Family plans with deductibles of at least $3,000.