Whether you choose a lower deductible or a higher deductible, it can affect your car insurance rates. Generally, you can expect the following to happen: Lower deductible = Lower out-of-pocket expenses but higher car insurance rates Higher deductible = Lower car insurance rates but higher out-of-pocket expenses If you have the financial means to account for out-of-pocket expenses following an accident, consider bumping up your deductible to help reduce your monthly premiums. According to the Insurance Information Institute, increasing your deductible from $200 to $500 can lower your collision and comprehensive coverage costs by 15% to 30%. Also, choosing a $1,000 deductible could save you 40% or more on monthly premiums.