{"id":1851,"date":"2026-02-04T09:00:00","date_gmt":"2026-02-04T09:00:00","guid":{"rendered":"https:\/\/www.acceptance.com\/blog\/?p=1851"},"modified":"2026-02-05T00:41:45","modified_gmt":"2026-02-05T00:41:45","slug":"auto-insurance-deductible-too-high","status":"publish","type":"post","link":"https:\/\/www.acceptance.com\/blog\/auto-insurance-deductible-too-high\/","title":{"rendered":"Is Your Deductible Too High? When\u00a0It\u2019s\u00a0Time to Reevaluate Your Auto Policy\u00a0"},"content":{"rendered":"\n<p>It\u2019s\u00a0not exactly easy to see when a deductible is too high \u2014 that really depends on you and your own personal financial situation. As a reminder, a deductible is the amount of a claim\u00a0you\u2019ll\u00a0pay out of pocket before your insurer starts to kick in. If you have a high auto insurance deductible,\u00a0you\u2019ll\u00a0be paying more out of pocket for a claim, but\u00a0likely less\u00a0in monthly premiums. A lower deductible usually means the opposite.\u00a0<\/p>\n\n\n\n<p>So&nbsp;if&nbsp;you\u2019re&nbsp;looking for a new&nbsp;<a href=\"https:\/\/www.acceptance.com\/our-products\/auto-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">auto insurance policy quote<\/a>, a key question to ask yourself is: when is a deductible too high&nbsp;<em>for you<\/em>&nbsp;specifically? This guide from Acceptance Insurance will help you figure out the right balance between monthly premiums and deductibles for your specific situation \u2014 and whether high vs&nbsp;low deductible&nbsp;car insurance makes sense for&nbsp;<em>you.<\/em>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Auto Insurance Deductibles Work<\/strong>&nbsp;<\/h2>\n\n\n\n<p>When you file a claim, you will pay a certain amount of money before your insurer kicks in for their&nbsp;portion.&nbsp;While a health insurance policy has an annual deductible, auto policies are actually paid&nbsp;<em>per claim<\/em>.&nbsp;As an example of how this works:&nbsp;<\/p>\n\n\n\n<ol start=\"1\">\n<li>You damage your car in an accident, and you have a total repair cost of $1,500.<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\">\n<li>Your deductible is $500 (PER CLAIM), so your policy covers $1000, and you pay the remaining $500.&nbsp;<\/li>\n<\/ol>\n\n\n\n<p>But there is a wrinkle here. If your repair cost is less than your prescribed amount,&nbsp;you\u2019ll&nbsp;likely pay&nbsp;the entire amount yourself out of pocket.&nbsp;Liability coverage (bodily liability and property damage liability)&nbsp;do&nbsp;not have a deductible,&nbsp;but collision and comprehensive do, which leads to the next point.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Collision vs. Comprehensive Deductibles<\/strong>&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.acceptance.com\/our-products\/auto-insurance\/cheap-collision-coverage-car-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Collision<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.acceptance.com\/our-products\/auto-insurance\/cheap-comprehensive-car-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">comprehensive<\/a>&nbsp;insurance can have different deductible amounts. They do not have to match. Some windshield\/glass claims may have special rules (for example, lower or waived deductibles in certain situations), depending on state and insurer.&nbsp;<\/p>\n\n\n\n<p>As a reminder, collision covers damage&nbsp;<em>to your car&nbsp;<\/em>in a vehicle or object collision&nbsp;(regardless of fault), while comprehensive applies to things like theft, vandalism, fire, major&nbsp;weather incidents, animals, etc. Think of&nbsp;both of these&nbsp;policies like car repair expenses&nbsp;or replacement&nbsp;insurance plans.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Deductibles Affect Premiums<\/strong>&nbsp;<\/h3>\n\n\n\n<p>The big tradeoff here is how much you pay per month vs how much you pay per claim. A short and simple rule you can use is:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Higher deductible = lower premium, but more out-of-pocket cost if you file a claim.<\/li>\n\n\n\n<li>Lower deductible = higher premium, but less out-of-pocket cost when you need repairs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>What\u2019s&nbsp;the cue on when to change amounts? Your ability to pay out of pocket is what&nbsp;determines&nbsp;the answer. An agent can also help you make this decision by looking at your personal finances and savings.&nbsp;There\u2019s&nbsp;no \u201cright\u201d answer that applies to everybody. Here is a chart to help illustrate the concepts.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Frequency of Claims<\/strong>&nbsp;<\/td><td><strong>Best Deductible Strategy<\/strong>&nbsp;<\/td><\/tr><tr><td>Low claims + strong savings&nbsp;<\/td><td>High deductible saves money&nbsp;<\/td><\/tr><tr><td>Low claims + strong savings&nbsp;<\/td><td>Medium deductible recommended&nbsp;<\/td><\/tr><tr><td>High claims + strong savings&nbsp;<\/td><td>Medium deductible (high risk)&nbsp;<\/td><\/tr><tr><td>High claims + weak savings&nbsp;<\/td><td>Low deductible essential&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Signs Your Deductible Might Be Too High<\/strong>&nbsp;<\/h2>\n\n\n\n<p>A higher&nbsp;cost for you&nbsp;isn\u2019t&nbsp;automatically bad. The problem is choosing a number that looks fine on paper but fails you at the exact moment you need it. Put simply: If it&nbsp;would stress&nbsp;your bank account, a covered claim with a high amount might be a problem.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>You&nbsp;Can\u2019t&nbsp;Comfortably Pay It Out of Pocket<\/strong>&nbsp;<\/h3>\n\n\n\n<p>If&nbsp;you\u2019d&nbsp;struggle to&nbsp;come up with&nbsp;the money quickly,&nbsp;that\u2019s&nbsp;a red flag.&nbsp;This only helps if you can actually pay it when a claim happens.&nbsp;Otherwise, repairs may be delayed or become a debt problem.&nbsp;Or you may not be able to make repairs if you only get a check from your insurer for part of the total cost.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Your Financial Situation Has Recently Changed<\/strong>&nbsp;<\/h3>\n\n\n\n<p>If something has happened in your life that makes you reevaluate how you spend or save money, you should&nbsp;take a look&nbsp;at your deductible again. If&nbsp;you\u2019ve&nbsp;lost a job or gotten a new one, had a child, or have decided to pay down savings for a major expense, you might want to change it. The&nbsp;National Association of Insurance Commissioners&nbsp;specifically recommends reviewing and updating your policy when circumstances&nbsp;change, and&nbsp;weighing premium vs. deductible as part of that decision&nbsp;as part of&nbsp;<a href=\"https:\/\/content.naic.org\/article\/consumer-insight-does-your-vehicle-have-right-protection-best-practices-buying-auto-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">best practices when buying auto insurance<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Your Car\u2019s Value Has Decreased<\/strong>&nbsp;<\/h3>\n\n\n\n<p>Collision and comprehensive typically pay up to the car\u2019s&nbsp;fair market&nbsp;value (not what you originally paid), so paying high premiums for a&nbsp;low-value vehicle&nbsp;can stop making sense over time, according to the NAIC (and that\u2019s one easy way to get car insurance savings).&nbsp;<\/p>\n\n\n\n<p>But that\u00a0doesn\u2019t\u00a0mean you should just drop the coverage\u00a0immediately. Just check to see if it still makes sense based on the current value of your car and whether you have the money in the bank to handle major losses. Again, an agent can be helpful here.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs.jpg\" alt=\"Person calculating auto insurance costs beside a model car, illustrating concerns about a deductible too high for repairs\" class=\"wp-image-1853\" srcset=\"https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs.jpg 1000w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-300x200.jpg 300w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-768x512.jpg 768w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-720x480.jpg 720w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-240x160.jpg 240w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-480x320.jpg 480w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-180x120.jpg 180w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-60x40.jpg 60w, https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/Person-calculating-auto-insurance-costs-beside-a-model-car-illustrating-concerns-about-a-deductible-too-high-for-repairs-210x140.jpg 210w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>When a Higher Deductible Actually Makes Sense<\/strong>&nbsp;<\/h2>\n\n\n\n<p>You might want a higher value if you have the&nbsp;bank&nbsp;to&nbsp;handle unexpected situations.&nbsp;Basically, this&nbsp;idea is called \u201cself-insuring\u201d \u2014 you pay out of your own pocket for problems. The same idea somewhat applies to health&nbsp;insurance, but&nbsp;is unique for auto policies because of the fact that deductibles apply&nbsp;<em>per claim<\/em>.&nbsp;That\u2019s&nbsp;a key point to remember when choosing car&nbsp;insurance&nbsp;deductible amounts.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Drivers With Strong Emergency Savings<\/strong>&nbsp;<\/h3>\n\n\n\n<p>If you have a dedicated emergency fund and could pay the deductible tomorrow without reshuffling bills, a higher deductible may be a reasonable way to lower your monthly premium. Some drivers even create a \u201creserve fund\u201d in savings; if you raise yours and save $20\u2013$30\/month, you automatically transfer that amount into a separate account. Over time,&nbsp;you\u2019re&nbsp;self-funding the risk.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Older Vehicles&nbsp;With&nbsp;Lower Claim Risk<\/strong>&nbsp;<\/h3>\n\n\n\n<p>If your vehicle is older,&nbsp;has&nbsp;been driven fewer miles, and&nbsp;you\u2019re&nbsp;mainly trying&nbsp;to protect against major losses, a higher deductible can fit. Collision and&nbsp;comprehensive&nbsp;aren\u2019t&nbsp;required by states, though lenders may require them while a loan is active. If&nbsp;you\u2019re&nbsp;financed or leased, also check whether your lender has deductible requirements. Some lenders want lower deductibles to protect the collateral.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Reevaluate Your Auto Policy This Year<\/strong>&nbsp;<\/h2>\n\n\n\n<p>It\u2019s&nbsp;not just about what you can pay, but it does matter a lot when reviewing your policy annually. You should look at your personal finances, including savings, and compare that to your deductible and premium.&nbsp;That\u2019s&nbsp;a great way&nbsp;to do a tune-up on your policy this year.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Comparing Quotes&nbsp;with&nbsp;Different Deductibles<\/strong>&nbsp;<\/h3>\n\n\n\n<p>When you shop around,&nbsp;don\u2019t&nbsp;just compare one quote to another. Compare multiple deductible options from the same&nbsp;insurer&nbsp;so you can see how much your premium changes when you move from $500 to $1,000 (or the reverse).&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Reviewing Your Driving Habits and Risks<\/strong>&nbsp;<\/h3>\n\n\n\n<p>A&nbsp;deductible&nbsp;that made sense yesterday may not make sense today. If&nbsp;you\u2019re&nbsp;driving fewer miles, your car is more expensive to repair than a prior vehicle, or your commuting habits have changed, have a look. Also realize that repair costs continue going up, as do part costs, which makes premiums climb too.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Review Your Deductible Today \u2014 Get a Smarter Auto Insurance Quote<\/strong>&nbsp;<\/h3>\n\n\n\n<p>If&nbsp;you\u2019re&nbsp;unsure whether your policy is helping you or hurting you, the fastest way to get clarity is to run side-by-side quotes with different deductibles and compare the monthly savings to the extra out-of-pocket risk. Acceptance auto insurance is built to be&nbsp;flexible&nbsp;so&nbsp;you can tailor coverage to your budget and needs, whether&nbsp;you\u2019re&nbsp;aiming for lower payments, more predictable costs, or both.&nbsp;<\/p>\n\n\n\n<p>We\u2019re&nbsp;here to help!&nbsp;<a href=\"https:\/\/www.acceptance.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Get a quote online<\/a>, give us a call at&nbsp;<a href=\"tel:(877) 405-7102\" target=\"_blank\" rel=\"noreferrer noopener\">(877) 405-7102<\/a>, or&nbsp;<a href=\"https:\/\/locations.acceptance.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">visit one of our offices<\/a>&nbsp;today for affordable auto insurance!&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FAQs<\/strong>&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Does Choosing a Higher Deductible Really Save Money?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>Higher deductibles&nbsp;generally lower&nbsp;premiums, while lower ones increase premiums. The REAL question to ask yourself is whether the premium drop is big enough to be worth the added risk. Lower \u201cceiling\u201d costs can accumulate with higher premiums.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can I Change My&nbsp;Deductible&nbsp;Any Time?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>In many cases, you can request a change by contacting your insurer or agent, though timing and effective dates vary by company and policy.&nbsp;Some insurers note you can usually change deductibles outside renewal as a policy change.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is the Most Common Deductible for Drivers?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>A common choice for collision and comprehensive as of 2026 is $500.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Do Comprehensive and Collision Deductibles Have&nbsp;To&nbsp;Match?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>No. Many policies allow different values for comprehensive and collision.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Do I Know What Deductible Fits My Budget?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>A practical rule: pick one you could pay quickly without missing essentials. Then get a quote!&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s\u00a0not exactly easy to see when a deductible is too high \u2014 that really depends on you and your own personal financial situation. As a reminder, a deductible is the amount of a claim\u00a0you\u2019ll\u00a0pay out of pocket before your insurer starts to kick in. If you have a high auto insurance deductible,\u00a0you\u2019ll\u00a0be paying more out [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":1854,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"acf":[],"parsely":{"version":"1.1.0","canonical_url":"https:\/\/acceptance.com\/auto-insurance-deductible-too-high\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Is Your Deductible Too High? When\u00a0It\u2019s\u00a0Time to Reevaluate Your Auto Policy\u00a0","url":"http:\/\/www.acceptance.com\/blog\/auto-insurance-deductible-too-high\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.acceptance.com\/blog\/auto-insurance-deductible-too-high\/"},"thumbnailUrl":"https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/A-woman-reviewing-insurance-paperwork-with-an-advisor-reflecting-concerns-about-choosing-coverage-when-the-deductible-is-too-high-150x150.jpg","image":{"@type":"ImageObject","url":"https:\/\/www.acceptance.com\/blog\/wp-content\/uploads\/sites\/2\/2026\/02\/A-woman-reviewing-insurance-paperwork-with-an-advisor-reflecting-concerns-about-choosing-coverage-when-the-deductible-is-too-high.jpg"},"articleSection":"Auto Insurance","author":[{"@type":"Person","name":"Monica Alarcon"}],"creator":["Monica Alarcon"],"publisher":{"@type":"Organization","name":"Acceptance Insurance","logo":""},"keywords":[],"dateCreated":"2026-02-04T09:00:00Z","datePublished":"2026-02-04T09:00:00Z","dateModified":"2026-02-05T00:41:45Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Is Your Deductible Too High? 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