Yes, You Can Change It Anytime
Unlike health insurance (which typically requires open enrollment), car insurance is flexible:
When you can make changes:
- Anytime during your policy period (not just at renewal)
- Before binding a new policy (when shopping for insurance)
- At renewal (most common time to review and adjust)
- After major life changes (job loss, windfall, new car)
No waiting period: You don't need to wait months or meet any requirements. Call your agent or log into your online portal, request a deductible change, and it's done.
No penalty: There's no fee or penalty for changing your deductible mid-policy. Your premium simply adjusts up or down to reflect the new deductible amount.
How to Change Your Deductible
Three easy methods:
1. Online (fastest):
- Log into your insurer's website or mobile app
- Navigate to "Manage Policy" or "Coverage Options"
- Select new deductible amounts for comprehensive and/or collision
- Review new premium and confirm
- Change is typically effective immediately or within 24 hours
2. Phone (most personalized):
- Call your insurance agent or customer service
- Request deductible change
- Agent quotes new premium on the spot
- Confirm verbally; change processes within 1 business day
3. Agent/broker (best for advice):
- Email or call your independent agent
- Discuss your situation and best deductible options
- Agent can compare across multiple insurers if shopping
- Agent processes change and sends updated declarations page
Most insurers process deductible changes within 24 hours. You'll receive an updated declarations page showing the new deductible and adjusted premium.
When the Change Takes Effect
Effective date options:
1. Immediate (most common): Change takes effect as soon as processed, typically within 24 hours. Any claims filed after the effective date use the new deductible.
2. Future date: You can request a change effective on a specific future date (e.g., "effective at my next renewal on June 1").
3. Next policy period: Some insurers apply mid-term changes only at renewal, especially for rate-regulated states. Check your insurer's policy.
Premium adjustments:
- Raising deductible (lowering premium): You'll receive a pro-rated refund for the remainder of your policy term, or credit toward future premiums.
- Lowering deductible (raising premium): You'll owe the additional premium, usually charged pro-rated for the remaining policy period.
Example: You have 6 months left on your policy. Raising your deductible from $500 to $1,000 saves $300/year. You'll receive approximately $150 back (half-year credit).
Important Restriction: You Can't Change It After an Accident
The critical rule: You cannot change your deductible retroactively or immediately before/after filing a claim to avoid paying a higher deductible.
Scenarios that don't work:
- Accident happened yesterday, change today: You cannot lower your deductible after an accident to reduce your out-of-pocket cost for that claim. The deductible in effect at the time of the loss applies.
- "I'm about to file a claim, let me lower my deductible first": Insurers will deny this. Some flag policies to prevent deductible changes within 24-48 hours before a claim.
- "The accident was last week but I haven't filed yet": The deductible at the time of the accident applies, not the deductible when you file.
Why this matters: Insurers track claim dates and deductible effective dates. If you try to game the system, your claim may be denied or investigated for fraud.
Exception: If your accident hasn't happened yet and you haven't filed a claim, you can change your deductible anytime—even if you're worried about upcoming bad weather, a long road trip, or increased driving. Just do it before any incident occurs.
How Premium Changes Work
Raising your deductible (lowering premium):
- $500 → $1,000: Save $200-$400/year (typical)
- $500 → $2,000: Save $400-$600/year
- $1,000 → $2,000: Save $150-$300/year
Lowering your deductible (raising premium):
- $1,000 → $500: Add $200-$400/year
- $2,000 → $500: Add $400-$600/year
Mid-policy adjustments: Your premium change is pro-rated based on how much time remains in your policy. If you raise your deductible with 3 months left, you'll save 1/4 of the annual savings.
Refunds and charges:
- Refund for raising deductible: Applied as credit to your next bill or mailed as check
- Charge for lowering deductible: Added to your next bill or charged immediately if paying monthly
Best Times to Change Your Deductible
1. At policy renewal: The most common and convenient time. Review coverage and deductibles annually.
2. After building emergency savings: If you've saved up $2,000-$5,000, consider raising your deductible to $1,000 or higher.
3. After financial hardship: Lost your job or facing tight finances? Lower your deductible temporarily for peace of mind.
4. When buying a new car: High-value cars may warrant different deductibles than your old vehicle.
5. After vehicle depreciation: If your car's value drops significantly, raising your deductible (or dropping comprehensive/collision) can save money.
6. Before winter weather (if you plan ahead): If you live in a hail or winter storm area and want lower out-of-pocket risk, lower your comprehensive deductible before storm season (but not after a storm is forecast).
7. When shopping for new insurance: Compare quotes with different deductible options to find the best balance of premium and out-of-pocket risk.
Strategic Deductible Changes
Maximize savings over time:
- Start with a higher deductible ($1,000-$1,500) when you're young and building savings
- Lower it temporarily during financially tight periods
- Raise it again when your emergency fund is strong
- Drop comprehensive/collision entirely when your car is worth less than 10× the annual premium
Split deductibles: You can set different deductibles for comprehensive and collision:
- Comprehensive: $250-$500 (covers unavoidable incidents like hail, theft)
- Collision: $1,000+ (covers accidents, where safe driving reduces risk)
This approach saves money on the more expensive collision coverage while keeping comprehensive affordable.
Align deductibles with budget: If you're paid biweekly, consider a deductible that equals 1-2 paychecks. This makes budgeting for potential claims easier.
Common Questions and Misconceptions
"Can I have different deductibles on different vehicles?" Yes. If you insure multiple vehicles, each can have its own deductible. Set higher deductibles on newer, higher-value cars where you have more savings buffer.
"Will changing my deductible affect my credit or driving record?" No. Deductible changes are purely policy modifications. They don't affect credit scores, driving records, or future insurability.
"If I lower my deductible, can I immediately file a claim for an old accident?" No. The deductible in effect at the time of the loss applies, not the current deductible. Changing it today doesn't help with yesterday's accident.
"Do I have to wait until renewal to change my deductible?" No. Most insurers allow mid-policy changes anytime.
"Will my insurer investigate if I change my deductible frequently?" Frequent changes (every few months) might raise red flags, especially if you lower your deductible right before claims. But annual or occasional adjustments are normal and expected.
State-Specific Rules
Most states allow immediate deductible changes, but some have restrictions:
California: Some insurers require changes to take effect at renewal only in certain rate classes.
Rate-regulated states: States with heavy insurance regulation may restrict mid-policy changes for certain coverage types. Your insurer will inform you if this applies.
High-risk policies: If you're in a non-standard or high-risk insurance program, deductible changes may be limited to renewal periods.
Check with your insurer if you're unsure about your state's rules. For most drivers in most states, changes are allowed anytime.
Should You Change Your Deductible?
Consider changing if:
- Your emergency savings have grown significantly
- You're facing financial hardship and need lower out-of-pocket risk
- Your car's value has dropped and your deductible is too high relative to the car's worth
- You've gone 5+ years claim-free and want to maximize savings
- Your premium increased and a higher deductible can offset it
Think twice if:
- You recently filed a claim or had an accident (wait until your rate settles)
- You don't have adequate emergency savings to cover a higher deductible
- You're lowering your deductible right before a risky period (long road trip, harsh winter) without planning ahead
For a full guide on choosing the right deductible amount, see car insurance deductibles explained.
Frequently Asked Questions
No. The deductible in effect at the time of the accident applies, regardless of when you file the claim. You cannot retroactively change your deductible to reduce your out-of-pocket cost.
Usually 24 hours or less. Some insurers process changes immediately; others apply them at your next billing cycle or policy renewal. Check with your insurer.
Your premium adjusts pro-rated for the remainder of your policy term. You'll receive a refund (if raising deductible) or owe additional premium (if lowering it) for the months remaining.
No. Most insurers don't charge fees for deductible changes. Your premium adjusts up or down, but there's no separate change fee.
Most major insurers allow deductible changes through their website or mobile app. You can also call your agent or customer service to make changes by phone.