08/18/2026
🏠 $625 a year is the approximate savings from raising a $1,000 home insurance deductible to $2,500 on a typical $2,500 a year policy.
The average homeowner files a claim once every 10 years, and the average driver files once every 18 years, so most people pay extra premiums every year to insure losses they could cover from savings.
The 10-year math: $625 a year in premium savings adds up to $6,250, your extra out-of-pocket risk if you file is $1,500, and even with one claim you come out $4,750 ahead.
Check your policy before you call: many newer policies, especially in Texas, Florida, and other storm states, already set the deductible at 1% to 2% of dwelling coverage, which is $4,000 to $8,000 on a $400,000 home.
If you are already at a percentage deductible, the move is not raising it further but making sure your emergency fund actually covers it.
Filing two or more small claims in a 3 to 5 year window can raise your rates 20 to 40% or trigger a non-renewal, which is why a higher deductible removes a temptation that costs more than it pays.
On auto, going from a $500 to a $1,000 deductible typically saves 8 to 10% on collision and comprehensive coverage.
One thing this does not do: raising your deductible lowers your premium relative to what it would otherwise be, but it will not stop the market-wide rate increases many people are seeing at renewal.
This strategy requires the full deductible amount sitting in savings you do not touch, and if you do not have that yet, build the fund first.
*The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.
