One of the most common questions we hear is:
“Would I save money if I increased my deductible?”
The answer is usually:
👉 Yes.
But that doesn’t automatically mean it’s the right move.
Before changing your deductible, it’s important to understand exactly what you’re trading for those premium savings.
What Is a Deductible?
Your deductible is the amount you agree to pay out of pocket before your insurance coverage begins paying on a covered claim.
For example:
- $500 deductible
- $1,000 repair bill
You pay the first $500.
Your insurance company pays the remaining $500.
Why Higher Deductibles Usually Lower Premiums
Insurance companies view higher deductibles as shared risk.
If you’re willing to absorb more of a loss yourself, your premium often decreases.
Common deductible options include:
- $500
- $1,000
- $2,500
- $5,000 (in some situations)
Generally speaking:
👉 Higher deductible = Lower premium
👉 Lower deductible = Higher premium
The Question Most People Forget to Ask
Instead of asking:
“How much can I save?”
Ask:
“Could I comfortably pay this deductible tomorrow?”
That’s the real decision.
Saving $150 per year isn’t worth much if a claim occurs next month and you’re unable to absorb a larger out-of-pocket expense.
When Raising Your Deductible Makes Sense
Increasing your deductible may be worth considering if:
✅ You have a healthy emergency fund
✅ You rarely file small claims
✅ You’re focused on protecting against major losses
✅ You want to reduce premium costs without sacrificing coverage
For many households, increasing a deductible can be a smart financial decision.
When It Might Not Make Sense
A higher deductible may not be the best fit if:
❌ You don’t have cash reserves available
❌ A larger deductible would create financial stress
❌ You prefer predictable out-of-pocket costs
Remember:
Insurance should help you sleep better at night—not create anxiety about a future claim.
Home and Auto Deductibles Aren’t One-Size-Fits-All
Many people assume they should use the same deductible everywhere.
That’s not always true.
For example:
- A homeowner may choose a $2,500 deductible
- The same household may prefer a $500 or $1,000 deductible on their vehicles
The best approach depends on your overall financial picture.
The MVP Approach
At MVP Insurance, we don’t believe in making coverage decisions based solely on price.
Instead, we help clients evaluate:
- Risk tolerance
- Emergency savings
- Claims history
- Coverage goals
Because the goal isn’t simply to lower premiums.
👉 The goal is to make sure your insurance strategy fits your life.
Not Sure If Your Deductibles Still Make Sense?
A lot can change in a few years.
Income changes.
Vehicles change.
Homes change.
Life changes.
If you haven’t reviewed your deductibles recently, it may be worth another look.
Want a Second Opinion?
We’re happy to review your current coverage and help you determine whether your deductibles are still aligned with your goals.
No pressure. Just clarity.
👉 https://www.mvpins.com/quotes/
👉 https://app.usecanopy.com/c/MVPINSURANCE
Final Thought
The lowest deductible isn’t always the smartest choice.
And the highest deductible isn’t always the cheapest choice.
The best deductible is the one that protects your finances without creating unnecessary risk.
“Think you might be overpaying?
Get a fast quote here: https://www.mvpins.com/quotes/”