Will My Insurance Premiums Lower if I Increase My Deductible?

April 3, 2016

Taking higher deductibles results in the "insured" assuming a greater amount of risk. The reduction in the insurance company's risk should lead to a lower premium. With most coverages, there is a sweet spot where the "break even" point of taking a higher deductible has a reasonable return on your insurance savings. To calculate your "break even" point, try the Continue Reading

Taking higher deductibles results in the "insured" assuming a greater amount of risk. The reduction in the insurance company's risk should lead to a lower premium.

With most coverages, there is a sweet spot where the "break even" point of taking a higher deductible has a reasonable return on your insurance savings.

To calculate your "break even" point, try the following:

Break Even Point:

Break Even Point Example :

With Auto Insurance, many times you can realize a less than 5-year break-even point on your Comprehensive and Collision coverage by opting for higher deductibles.

If an average driver experiences a Comprehensive or Collision claim approximately every 12 years, then you would more than double your money in a 12 year period if you had normal claims activity with a 5-year break even.

As original posted a https://www.quora.com/Will-my-insurance-premiums-lower-if-I-increase-my-deductible

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

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