Save 5% to 10% on Your Car Insurance Right Away

By Lesley Green
A woman in a polka dot shirt, sitting at a table in front of her laptop, smiling.
  • A deductible is the portion of an insurance claim you agree to pay.
  • Collision and comprehensive are two different car insurance coverage options.
  • Your deductibles for collision and comprehensive do not need to match.

Auto insurance is one of those costs of owning a car that everyone wants to save money on; spending less on fuel is another. While there's often little you can do about the price of gas, the cost of auto insurance can be mitigated by shopping around. It's the only way to know for certain that you're getting the best deal on auto insurance.

However, another way to lower your premium is by raising the deductibles you've chosen for your collision or comprehensive coverages. Increasing your deductibles could save you in the neighbourhood of five to 10 percent off your auto insurance premium.

Quick Car Insurance Quote

Find your best car insurance rate by comparing car insurance quotes from 30+ providers in a single search. Start saving today!

Making the difference with deductibles: How it works

A deductible is the portion of an insurance claim you agree to pay. Your insurance company picks up the rest. By agreeing to take on more financial responsibility should you need to submit a claim, the insurance company will adjust your premium accordingly. In other words, the higher the deductible you choose, the lower your auto insurance rate. However, it's important that you set your deductibles to an amount that you can comfortably afford.

When is the right time to increase your car insurance deductible?

Often people select lower deductibles, so their out-of-pocket expenses are minimal at the time of a claim. Drivers often plan for the worst-case "what if" scenario. But, if you've been fortunate to have never submitted a claim or have rarely needed to, and you can afford the deductible you ultimately choose, a higher deductible may help lower your annual premium.

Tip: Look at your rainy-day fund before choosing your deductible. If your rainy-day fund is healthy, then a higher deductible might make sense. You can draw on it if you need to make a claim. But, if your rainy-day fund is still in its growth stage, then having a higher deductible may be financially stressful. Paying a deductible after submitting a claim shouldn't cause you to lose sleep at night.

You may have more than one deductible as part of your policy

Often, drivers think collision and comprehensive coverage are one; but, they're two different car insurance coverage options.

Collision coverage offers protection if your car is damaged in an auto accident, while comprehensive coverage offers protection for claims that have unrelated to a collision. Auto theft and vandalism are two common examples.

Both coverages — collision and comprehensive — have deductibles, and these deductibles do not have to match. You can increase the collision deductible, the comprehensive deductible, or both, depending on what you think works best for you and your comfort level.

How much could increasing your deductibles save you on insurance?

If your deductible is set to $500 or lower, increasing your deductible (or deductibles) could reduce your auto insurance costs. It's an option that shouldn't be overlooked when seeking ways to keep your car insurance costs under control.