how high can a car insurance deductible be

[BriellaDella]

A car insurance deductible can be as high as your insurer allows, typically up to $2,500 or even $5,000 for comprehensive and collision coverage. There is no universal legal cap; the maximum is set by your insurance company's policy terms. Choosing a higher deductible lowers your monthly premium, but it also means you'll pay more out-of-pocket if you file a claim. This is a significant financial decision that balances immediate savings against potential future risk.

The deductible is the amount you agree to pay before your insurance coverage kicks in after a covered incident. For example, with a $2,000 deductible and $5,000 in damage from an accident you cause, you pay the first $2,000 and your insurer covers the remaining $3,000. This system is designed to share risk between you and the insurance company.

Opting for a very high deductible is a strategic move best suited for drivers with a strong emergency fund. It significantly reduces your premium, which can save you hundreds of dollars a year. However, you must be confident you can afford the deductible at a moment's notice without financial hardship. This approach is common for drivers with older cars whose value may not justify the cost of lower deductibles.

State	Typical Maximum Deductible Offered	Potential Premium Reduction vs. $500 Deductible	Considerations
California	$2,500	Up to 30-40%	High state minimum liability requirements
Texas	$2,500	Up to 25-35%	Frequent severe weather (hail, floods)
Florida	$1,000 (often lower due to hurricane risk)	Varies significantly	High risk for comprehensive claims
New York	$2,000	Up to 20-30%	State laws on claim settlements
Illinois	$2,500	Up to 25-35%	Consider uninsured motorist coverage

Before selecting a high deductible, evaluate your car's current market value. If your car is only worth $4,000, a $2,500 deductible means you'd only receive $1,500 for a total loss, which may not be worthwhile. Always discuss the specific options and implications with your insurance agent to find the right balance for your budget and risk tolerance.

[OGabriela]

From my experience, insurers usually stop at around $2,500. I went with a $1,000 deductible on my truck. It cut my bill enough to notice each month, but it's still an amount I could cover if I had a fender bender. I wouldn't go higher because scraping together more than a grand quickly would be tough. It's all about what you can comfortably afford to pay out-of-pocket without breaking the bank.

[StSebastian]

The limit is set by your insurer's policies, not by law. While some may offer amounts like $5,000, this is a serious financial risk. The primary benefit is a lower premium. This strategy makes the most sense for individuals with substantial emergency savings who can treat insurance as a safeguard against catastrophic losses, not minor repairs. It's a calculated risk for those who can absorb the high deductible cost.

[JaxsonAnn]

You're trading a known monthly cost for an unknown future risk. A high deductible, say $2,000, gives you much lower premiums. That's great if you're a safe driver and have a decent cash cushion. But it's a gamble. If you cause an accident, can you write a check for that amount immediately? For an older car, it might be worth it. For a new car you're still paying off, a lower deductible is probably safer.