Best Car Insurance with a $1,000 Deductible
Car insurance with a $1,000 deductible
On average, a car insurance policy with a $1,000 deductible will cost $128 per month. Let's break down what your deductible covers, what it is, and which insurance company offers the cheapest premiums for it.Â
If you're looking for a full explanation of auto insurance deductibles, please consult our complete overview of car insurance deductibles.
Key Takeaways:
- By opting for a $1,000 deductible over a $500 deductible, you could potentially save around $180 per year
- Changing your deductible does affect your premium. They are inversely related: by raising one, you lower the other
- If you’re leasing or have a loan for your vehicle, you might be required to carry a certain deductible
- Consider other drivers on your policy and their likelihood of filing a claim (such as teenage drivers)
Which car insurance company is the cheapest for a $1,000 deductible?
In order to determine which insurer has the cheapest rates with a $1,000 deductible, we created a composite driver profile and gathered sample rates from some of America's top insurance companies.Â
Of the insurance companies shown below, the average annual premium for a car insurance policy with a $1,000 deductible is $1,534 with USAA being the cheapest company. Compared to a $500 deductible, this could save you more than $180 per year. Car insurance deductibles and premiums are inversely related — if you lower your deductible, you raise your premium. This is a good cost-cutting solution if you're looking to lower your monthly premium.
| Company | Avg. Monthly Premium | Avg. Annual Premium |
|---|---|---|
| USAA | $99 | $1,189 |
| Nationwide | $112 | $1,343 |
| GEICO | $112 | $1,348 |
| State Farm | $121 | $1,457 |
| Farmers | $135 | $1,616 |
| Progressive | $139 | $1,668 |
| Allstate | $177 | $2,118 |
If you don't qualify for USAA, consider Nationwide, which is the next cheapest company with a $1,000 deductible.Â
This data reflects a single user profile. There are many rating factors that go into your car insurance premium that are unique to you. The only way to discover who has the cheapest car insurance for you is to compare rates from multiple companies.Â
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Deductible vs. premium: pros and cons of a $1,000 deductible
Your deductible is what you pay out-of-pocket in the event of a collision, comprehensive, or UMPD insurance claim. Your premium is the total insurance bill that you pay every month to maintain your policy.
Changing your deductible does affect your premium. Your premium and your deductible are inversely related: by raising one, you lower the other.
Let’s return to the first example of colliding with a guardrail and causing $5,000 of damage to your vehicle. If you were to raise your deductible from $500 to $1,000, the amount of money your insurance company must pay out drops from $4,500 to $4,000. Because you’re taking a greater chunk of financial responsibility for the payout from your insurance company, you are rewarded with a lower premium.
Using the same insurance companies as we previously discussed, let's see how our premiums change when we look at $500 and $1,000 deductibles.
| Company | Avg. Annual Premium |
|---|---|
| USAA | $1,365 |
| Nationwide | $1,476 |
| GEICO | $1,542 |
| State Farm | $1,569 |
| Farmers | $1,786 |
| Progressive | $1,886 |
| Allstate | $2,413 |
| Company | Avg. Annual Premium |
|---|---|
| USAA | $1,189 |
| Nationwide | $1,343 |
| GEICO | $1,348 |
| State Farm | $1,457 |
| Farmers | $1,616 |
| Progressive | $1,668 |
| Allstate | $2,118 |
As you can see, by raising your deductible from $500 to $1000, you lower your premium noticeably over the course of a year. However, there’s another reason why raising your premium is a good moving saving tip, which we will explore next.
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What to consider when choosing a car insurance deductible
Standard car insurance deductible levels are $500 and $1,000. If you’re unsure which one is right for you, ask yourself the below questions:
Does your lien or lease require a certain deductible?
If you’re leasing or have a loan for your vehicle, you might be required to carry a certain deductible. Typically, they will require a $500 or lower comprehensive and collision deductible. The reason for this is they’re simply trying to protect their asset – your vehicle. If you have a higher deductible, they fear you will not be able to pay it.
How likely are you to file a claim?
If you’re deciding between a $500 deductible versus a $1,000, you should consider if there is anyone on your policy that might be more inclined to file a claim. Again, this could refer to someone who has a leased vehicle. Because you do not own the vehicle you are leasing, you are required to return the vehicle in near-perfect condition. This could also refer to young drivers, such as a teen, who has less driving experience. If you’re worried about your teen damaging your vehicle often, as teens do, a lower deductible might help.
Do you want to avoid claims?
Lots of insurance experts recommend having a higher deductible because it discourages you from filing a claim. Collision claims after often seen by insurance companies as at-fault accidents which can increase your premium by an average of 45% per year. Moreover, most insurance companies will keep that at-fault on your insurance premium (and thus charge you for it) for three years. As you can see from the table below, specific violations can lead to significant premium increases.
| Accident/Violation | Avg. Annual Premium |
|---|---|
| Speeding 16 - 20 MPH over limit | $2,190 |
| At-fault accident - greater than $2000 | $2,605 |
| Reckless driving | $3,187 |
| Racing | $3,291 |
| DUI | $3,441 |
Filing an at-fault where the damages are greater than $2,000 could raise your premium by over $1,000 per year, based on the $1,534 average we calculated above. Because of this, most insurance experts recommend only filing an insurance claim if you suffer a catastrophic loss where the value of the premium increase plus your deductible is less than the cost of repairs. For example, if you total your vehicle.
Your insurance company sees these types of claims as at-fault accidents because they see you, the driver, as in control of the vehicle when the accident happened. So, in their eyes, you’re responsible.
For a UMPD (uninsured motorist property damage) claim, which is not at-fault by definition, your insurance company may still raise your rates because they had to take financial responsibility for the claim. If your insurance company is rating you for a UMPD claim as an at-fault accident, you should consider that as a sign to shop for car insurance elsewhere.
We should note that comprehensive claims are not generally considered to be the same as collision or UMPD claims. Because of the nature of comprehensive coverage, insurance companies see them as outside of the control of a driver. While a collision claim will raise your rates, our data shows that comprehensive claims tend to only affect you a couple of percentage points.
Compare quotes and find a policy with the deductible that is right for you!
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.