How to Choose the Right Car Insurance Deductible
A deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible means lower premiums but more exposure if you file a claim. The optimal choice depends on your actual accident probability — this calculator finds the deductible with the lowest expected annual cost.
The Math: Real Annual Cost
Real annual cost = annual premium + (deductible × accident probability). If the premium savings from a higher deductible exceed the expected out-of-pocket cost, the higher deductible wins. Safe drivers with low accident probability usually benefit from higher deductibles.
Frequently Asked Questions
Check your policy documents or ask your agent. Discounts are shown on the collision and comprehensive portions of your policy, not the full premium.
No, the deductible amount itself doesn't affect your credit. However, filing small claims (below or near your deductible) can raise your rates more than just paying out of pocket.