How Deductibles Affect Auto Insurance Premiums

December 27, 2025||inPersonal Insurance|auto insurance, auto premiums, deductibles, insurance premiums, personal insurance

When making decisions about your auto insurance coverage, your deductible is an important factor to consider. It affects both how your coverage responds after a claim and how much you pay in premiums.

What Is a Deductible?

A deductible is the amount you pay toward a covered auto claim before your insurance may contribute. Deductibles typically apply to collision and comprehensive coverage.

Car side-view
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

For example, if you have a $1,000 deductible and a claim is assessed at $4,000, you would be responsible for the first $1,000, and your insurance would pay its portion of the covered loss according to your policy terms.

How Deductibles Affect Your Premium

The deductible you choose directly influences your premium. A higher deductible generally lowers your premium because you take on more of the initial cost if a claim occurs. A lower deductible increases your premium since the insurer covers more of the costs upfront.

Making Deductible Decisions That Fit You

When deciding on a deductible, consider what works best for your budget and situation:

  • How much you could reasonably pay out of pocket if a claim occurs
  • Whether you prefer lower premiums now or smaller expenses at the time of a claim
  • Your driving habits and everyday driving conditions

These factors can help you select a deductible that fits your needs.

Finding the Right Balance

The goal is to choose a deductible that balances affordable premiums with an amount you could manage if the unexpected happens. This approach keeps your coverage effective without stretching your budget.

We’re Here to Help

Understanding how deductibles affect your premiums is an important part of making informed insurance decisions. If you want to review your coverage or explore your options, please contact us.  Our team is always ready to provide clear guidance and support.

Read Other Blog Posts

Side-view mirror

The Defensive Driving Process

To be a defensive driver, it’s important to follow a three-step process: see hazards, determine potential responses, and act in time. Driving in Massachusetts means navigating heavy traffic, narrow roads, construction zones, and unpredictable New England weather. Defensive driving helps local drivers anticipate hazards, reduce accident risk, and protect their auto insurance record.
Read more
Be Ready for Severe Winter Weather Snowstorms, Ice, and Extreme Cold

Be Ready for Severe Winter Weather: Snowstorms, Ice, and Extreme Cold

Severe winter storms can bring heavy snow, ice, and extreme cold. Learn how to prepare your home, protect your vehicle, prevent frozen pipes and power outages, and take practical steps to keep your family safe during harsh winter weather.
Read more
Chimney

Chimney Maintenance Is Essential

A well-maintained chimney is essential for keeping your home safe, as neglected chimneys are a leading cause of fireplace-related fires and carbon monoxide issues. With an estimated 20,000 chimney fires occurring each year in the U.S., routine inspections and cleanings play a critical role in reducing creosote buildup and preventing costly damage. By making chimney care part of your annual home-maintenance plan, you’ll protect your property and ensure your fireplace operates safely all season long.
Read more
Woman buying a car

Shopping for a Safe Vehicle

When shopping for a new vehicle, safety should be a top consideration. This brief guide outlines key safety features—from crash protection to advanced driver assistance systems—and explains how they can impact your insurance costs. Understanding these factors can help you make a smarter, more informed purchase.
Read more
Operating Under the Influence (OUI) Will Cost You Money

Operating Under the Influence (OUI) Will Cost You Money

An Operating Under the Influence (OUI) conviction is more than a legal problem; it’s a financial disaster. Between fines, court fees, license costs, higher insurance premiums, towing, and lost wages, one mistake can cost you between $11,000 and $30,000. The best way to save? Don’t drink and drive.
Read more
Fresh Look at Personal Insurance SMM

A New Year, A Fresh Look at Your Protection

A new year is the perfect time to review your insurance and personal risk management. Life changes, rising costs, and growing responsibilities can all affect your coverage needs. A quick annual check can help ensure that you and what matters most are properly protected.
Read more
Car side-view

How Deductibles Affect Auto Insurance Premiums

Learn how your auto insurance deductible impacts both your premium and your protection. Choosing the right deductible can help you balance monthly costs with what you would pay out of pocket if an accident or covered claim occurs, giving you better control over your coverage and budget.
Read more
Murphy Insurance Agency Supporting Local Charities Through Employee Generosity

Murphy Insurance Agency Supporting Local Charities Through Teamwork

Murphy Insurance proudly supports local charities making a meaningful impact across our communities. Through agency contributions, employee generosity, volunteer efforts, and seasonal drives, we help provide comfort, care, and essential resources to families in need.
Read more
Dennis Blog

The Murphy Insurance Difference

As a third-generation, family-owned agency, Murphy Insurance has always believed insurance should be personal. From thoughtful guidance and access to top-rated carriers to hands-on support when it matters most, we are committed to protecting the families and businesses we serve. Built on trust since 1937, our focus remains on long-term relationships, honest advice, and helping our clients feel confident at every stage of life.
Read more
PreviousNext

Visit Our Auto Insurance Page

Auto Insurance

At Murphy Insurance, we are here to assist you in obtaining the appropriate auto insurance. Choosing the appropriate auto insurance coverage can be overwhelming. Every insurance company has its unique offerings, making it challenging to compare options effectively. That’s where we shine. We simplify the process by helping you evaluate provider and policy choices, seek out discounts, and optimize your car insurance within your budget constraints. Ultimately, our goal is to provide you with peace of mind, knowing that you and your loved ones are well-protected.