There's a Point Where the Savings Get Stupid.
Raising your auto deductible can cut premium, but only up to a point. Past that point the savings flatten and the risk climbs.
Read More →Deductibles
Direct answer
Deductibles lower premium by shifting small losses to you and reducing expected claim costs.
Why it changes price
- Higher deductibles reduce expected loss and can move you into a better pricing tier.
- Deductibles change claim behavior; frequent small claims can raise future pricing.
- Structure matters: collision/comprehensive behave differently than liability.
Decision rule
If you can absorb a surprise loss, raise the deductible. If not, protect cash flow.