How Much Do You *Actually* Save by Increasing Your Home Insurance Deductible?

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—New Study Finds: It Depends Where You Live—

AUSTIN, Texas–(BUSINESS WIRE)–Attention homeowners! Raising the deductible on your home insurance
policy is one proven way to save on your premiums, but it’s not always
the best financial move, says a new state-by-state, comprehensive study
by insuranceQuotes.


They examined three different scenarios for raising deductibles and how
much each increase allows consumers to save on average:

  • $500 to $1,000: 7% savings
  • $500 to $2,000: 16% savings
  • $500 to $5,000: 28% savings

“Choosing a higher deductible means you share more potential financial
risk with an insurer and also makes you less likely to file a claim. In
return, insurers charge a lower premium,” says Laura Adams, senior
insurance analyst for insuranceQuotes.

When it comes to premium savings, no two states are created equal. For
instance, North Carolina homeowners see the highest savings when
increasing a deductible from $500 to $2,000: 39%. Going from $500 to
$5,000 saves 45%.

The lowest savings are in Texas, Hawaii and Indiana, where homeowners
save less than 7% on average by increasing a deductible from $500 to
$2,000.

“What you do with your home insurance deductible should depend on where
you live. If there’s no significant savings, it may not make financial
sense to increase your deductible. Be sure to review your coverage every
couple of years to make sure your policy and insurance provider is still
right for you,” says Adams.

The full report is available at http://insurancequotes.com/home/raising-homeowners-deductible-saves-money-071316.

Methodology:

insuranceQuotes.com commissioned Quadrant Information Services to
measure the impact of changing a homeowner’s insurance deductible in
each U.S. state and the District of Columbia. Quadrant examined data
from the largest carriers (representing 60-70% of market share) in each
territory. The home specifications were kept constant in all regions.

About insuranceQuotes:

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Contacts

For insuranceQuotes
Jacob Streiter, 646-695-7047
jacob@rosengrouppr.com