Lower Your Auto Rate by Raising Your Deductible


A big portion of your auto premium is related to your Comprehensive and Collision coverage. Keep that in mind, because your policy deductible – the amount of money you would pay out of pocket before your insurance pays to repair or replace your vehicle if it is damaged, totaled, or stolen and not recovered – affects your rate.

If you have chosen a low deductible, raising it can save you a lot of money on your policy premium. For example, raising your Collision deductible from $500 to $1,000 would reduce your Collision premium by about 13%.1 Raising it from $1,000 to $2,500 (if available) would lower it by about 28%.

The same principle applies to your Comprehensive coverage. Raising the deductible from $500 to $1,000 would reduce your premiums up to 20%. Raising it from $1,000 to $2,500 would reduce the premium up to 40%.

Just remember that while you will reduce your premium, selecting a higher deductible means that you would pay more out of pocket if you make a claim for physical damage to your vehicle.


Your auto policy premium is $1,200 and the Collision and Comprehensive portions of the premium are $350 and $400, respectively. You have selected a $500 deductible amount for each coverage. You decide to change both deductibles to $1,000 and save 13% on your Collision coverage and 20% on your Comprehensive coverage. Your total savings would be $125.50.

So instead of paying $1,200 for your coverage, you would pay $1,074.50. Selecting a higher deductible would mean greater savings.

Do These Savings Suit You?

The deductible amounts you choose reflect your individual tolerance of risk and your ability to absorb a sudden, unexpected expense. Your personal circumstance may mean you would rather pay a lower monthly premium but pay more when (and if) you have a claim.

Call a Risk Coach

Call your Electric Insurance Company Risk Coach at  800.342.5342 to see what effect changing your deductible amounts would have on your auto policy premium.


Product, service, program, credit, and discount availability and limits vary by state. The information provided on this site is provided for informational purposes only and is not a full explanation of products, services, or coverage. For more information, please contact Electric Insurance Company at 800.342.5342. If there are discrepancies between the information on this site and the policy, the terms of the policy apply. 1. Amounts vary based on state and overall premium.