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Charles Meyer Insurance Agency Blog

All You Ever Wanted to Know About Insurance

Should you consider raising your deductible on your auto or homeowners policy?

Our goal is to always get you the ideal insurance policy that's right for you and your particular needs. Sometimes, needs or circumstances change and you may be wondering, "If I raise my deductible amount, could I save more in the long run?" Maybe yes. And maybe no.

Basically ...

  • When you increase the deductible on your insurance, you can save money, but if you need to file an insurance claim, you will pay more money out-of-pocket.
  • If you have enough savings set aside to pay for small issues without filing an insurance claim, it may make sense to raise your deductible.
  • If you can't afford to pay too much out-of-pocket after a claim, then it makes more sense to keep your deductible low.

Read on to get a more thorough explanation!

Your deductible is the amount of money you're required to pay out of pocket before your coverage kicks in. So, if your vehicle incurs $1,500 of damage for something and your deductible is $500, you'll pay that amount and your insurer will cover the remaining $1,000.

If you were to raise your deductible amount to $1000 using the same above example, you would be paying $1000 and your insurer would pay $500.

The same holds true with your homeowners policy.

You can find your current deductible on the declaration page of your insurance policy.

Bottom line? If you feel you have adequate savings to easily cover the cost of any increase in your deductible should you need to file a claim - whether it's for your auto, homeowners or any other form of insurance, call or text us and let's run the numbers to see if it makes sense for you and your family's needs.