Should I choose a $500 or $1,000 deductible?
Written by Marc Berry
Founder and Insurance Distribution Executive
Reviewed for accuracy by Cameron Berry
Licensed Property & Casualty Agent · NPN 20621185
Last reviewed
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Short answer: A $1,000 deductible lowers your premium versus a $500 one, but you'd pay $500 more out of pocket on any claim — so it makes sense mainly if you could cover the higher amount comfortably and don't file often.
The trade-off is simple: weigh the annual premium savings of moving from $500 to $1,000 against the extra $500 you'd owe at claim time. If the yearly savings is modest, the lower deductible may be worth the peace of mind; if it's significant and you have the cash cushion, the higher one often wins over time. It's a personal-finance call as much as an insurance one.
Reviewed for accuracy by Cameron Berry
Licensed Property & Casualty Agent · NPN 20621185
Last reviewed