3 minute readAuto
Pick the highest deductible you could pay tomorrow without borrowing. For most drivers that is $500 to $1,000, and raising it can lower physical-damage premium noticeably. Your deductible never applies to liability claims — only to damage to your own vehicle.
What you need to know
Different deductibles per coverage
Comprehensive and collision can be set independently. Comprehensive is often set lower for theft and glass exposure.
Break-even math
If a higher deductible saves $180 a year and adds $500 of exposure, it pays for itself in under three years.
Loan and lease requirements
Lenders often cap deductibles, so check your contract before changing them.
Common mistakes
- Carrying California's minimum limits, which a single injury accident can exhaust.
- Declining or under-buying uninsured motorist coverage.
- Leaving a household driver off the policy.
- Filing small physical-damage claims near the deductible.
- Never updating mileage, garaging address or commute after a change.
When to talk to an agent
Talk to an agent before adding a teen driver, after buying a vehicle, after an accident or ticket, or any time you are not sure whether your liability limits would survive a serious at-fault crash.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.