Can I lower my car insurance deductible?

Yes, you can lower your car insurance deductible at any time by contacting your car insurance company and telling them what you would like your new deductible to be. Lowering your deductible will make your out-of-pocket costs cheaper if you need to file a claim, but it will also result in higher premiums. When you lower your deductible, the change will take effect immediately and your premium will be higher the next time you pay.

When You Should Lower Your Deductible

• You frequently file claims. When you file a claim under your collision, comprehensive, personal injury protection (PIP), uninsured motorist property damage or mechanical breakdown insurance, you typically cannot avoid paying a deductible. If you file claims often, you will most likely save money by reducing your deductible and paying less out of pocket per claim.

• You cannot afford to pay much out of pocket. If you do not have a lot in savings, would prefer to pay less when you file a claim, and are comfortable paying the higher premium month-to-month, then lowering your deductible is a good choice.

• Your deductible is similar to the value of your car. You should lower your deductible if replacing your car would cost nearly as much as paying your deductible. If you have a $1,500 deductible and your car is worth $2,000, for example, your deductible is likely too high.

A deductible is what you have to pay out of pocket when you file a claim before your insurance kicks in and covers the remainder up to your policy limits. To learn more, check out WalletHub’s guide to car insurance deductibles.