Is a bigger or smaller deductible better?
Asked by: Conor Rosenbaum | Last update: September 22, 2025Score: 5/5 (58 votes)
Should I choose a higher or lower deductible?
What makes more financial sense, low or high insurance deductibles? There is NO generally speaking rule on this. It is all MATH. If the higher deductible saves enough money to warrant the higher deductible, take the higher deductible. If the savings on a higher deductible is negligible, keep the lower deductible.
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 it better to have a higher or lower car insurance deductible?
In general, drivers who are more likely to file an auto insurance claim will have lower total costs with a low-deductible car insurance plan. Conversely, drivers who don't file a claim will typically save with a higher deductible plan.
Is $10,000 a high deductible?
If you are on a High Deductible health plan:
For many plans, the deductible can be greater than $5,000 for individuals and $10,000 for families i.e. you have to pay this amount out of pocket before insurance starts covering your cost of medical care.
HDHPs vs. Low Deductibles: Which is Right for YOU?
What is a disadvantage of having a high deductible?
Cons of High Deductible Healthcare Plans
Individuals who are stretched thin for funds may delay or avoid seeking medical treatment due to the high cost of treatment. For example, someone injured may avoid the emergency room if they know it will result in an expensive bill that will be applied to the plan deductible.
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.
Do you get your deductible back if you're 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.
What should I set my car insurance deductible at?
If your budget allows for a maximum out-of-pocket expense of $500, you probably should not choose a deductible higher than $500. If you do, you may not be able to afford to fix your vehicle if you need to pay the deductible for repairs.
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.
What is a typical high deductible?
But they come with higher annual deductibles. For 2025, the Internal Revenue Service (IRS) defines a high-deductible health plan as any plan with an annual deductible of at least $1,650 for an individual or $3,300 for a family.
What happens if my repairs cost less than the deductible?
What if my car repair costs less than my deductible? There may be times when your car insurance deductible is more than the cost of the damage to your vehicle. Unfortunately, in these cases, you'll need to pay for all repairs out-of-pocket. This is because insurance only pays for damages that are above your deductible.
How much deductible should I choose?
Your deductible should be an amount you can comfortably cover in case you need to file a claim. Car insurance deductibles usually range from $100 to $2,000, with a $500 deductible being the most common.
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.
Does a higher deductible mean less you pay?
Policies with lower deductibles typically have higher premiums, meaning you'll pay more each month for your insurance coverage. However, if you have a higher deductible, you may be able to save money on your premiums but may be responsible for paying more out of pocket if you need to file a claim.
Why do I pay deductible if I got hit?
Deductibles for car insurance require you to pay the deductible amount every time you file a claim. Once you pay the car deductible amount, your insurer will cover the remaining cost to repair or replace your vehicle. Auto insurance policies don't require you meet an annual deductible.
Can the color of your car affect your insurance premium?
Does car color affect insurance rates? The color of your car doesn't affect your insurance rate. Instead, your insurance company uses other information, like your car's age, location, usage, and your driving record, to help determine insurance rates.
How many claims before State Farm drops you?
Insurers, like State Farm or GEICO, do not have a fixed number of claims that automatically lead to policy cancellation. This is more likely to happen if you have three or more claims, a record of DUI, at-fault car accidents with high bodily injury and property damage costs and other traffic violations.
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.
Is it better to have a higher or lower deductible for 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 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.
Why is it not a great idea to have a high deductible?
Large medical expenses: Since HDHPs generally only cover preventive care, an accident or emergency could result in very high out-of-pocket costs. Future health risks: Because of the costs, you may refrain from visiting a physician, getting treatments, or purchasing prescriptions when they're not covered by your HDHP.
What if I can't afford my deductible?
With regard to healthcare deductibles, always ask if it's possible to negotiate a payment plan. The healthcare provider cannot legally waive the deductible but they can allow you to pay it over time. The challenge comes in when a procedure involves multiple providers, such as with surgery.
Is it better to have a 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.