How to Choose the Right Deductible

By Daniel Moreau · Published Sep 28, 2026 · 5 min read

In this guide

How it affects premiums
Can you afford it?
Calculate the break-even
Different deductibles for different coverages
Review annually

The deductible (or excess) is the amount you pay toward a claim before insurance pays the rest. It is one of the easiest ways to adjust your premium.

Choosing well means balancing monthly cost against risk.

How it affects premiums

Raising the deductible typically lowers the premium, because you are taking on more of the risk of small claims.

Can you afford it?

Choose a deductible you could pay comfortably from savings at short notice. A low premium is not helpful if a claim would cause financial hardship.

Calculate the break-even

Compare the annual premium saving with the extra deductible. If you would save a modest amount each year by raising it substantially, it may take years without a claim to come out ahead.

Different deductibles for different coverages

Collision and comprehensive often have separate deductibles. Some drivers choose a lower comprehensive deductible for glass and theft risks.

Review annually

As savings grow or your car ages, adjusting the deductible may make sense.

This is general insurance information, not legal, financial, or insurance advice. Coverage depends on your specific policy, insurer, and jurisdiction. Read your policy documents and speak with a licensed insurance agent or broker before making decisions.

🔓

Keep reading

Watch a short ad to unlock the rest of this guide — free, no account needed.