Typical savings by deductible
Diminishing returns kick in fast above $1,000.
- $500 → $1,000: 7–12% savings.
- $1,000 → $2,500: another 5–8%.
- $2,500 → $5,000: 2–4%, often not worth the risk.
The break-even formula
Divide the extra deductible by the annual premium saving. If you'd recover it in under 3 years without a claim, it's usually worth it.
Frequently asked
- Will a higher deductible hurt a claim?
- No — you just pay more out of pocket per claim. Cover scope is unchanged.
- Should every policy match deductibles?
- No. Match deductible to claim frequency: lower on what you actually claim, higher on what you don't.
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