How much does raising deductibles save on home insurance in Texas?


Raising deductibles on your Texas home insurance policy can result in savings on your premium, but the exact amount saved can vary significantly based on several factors.  Most of the time, your home insurance deductible is based off of a percentage of your total coverage.  For example, let’s say you have a 1% deductible for a home with $500,000 in coverage, that means you have a $5,000 deductible.

Factors Influencing Savings:

  1. Location of Your Property: Texas regions prone to natural disasters or with high crime rates might have more expensive insurance premiums. Higher deductibles might yield more substantial savings in these areas.
  2. Value of Your Home: Premiums are often a percentage of your home’s value. Higher-valued homes typically have higher premiums, so increasing the deductible may offer more significant savings.
  3. Insurance Company Policies: Different insurers have various pricing structures and policies, affecting how much you can save by raising your deductible.
  4. Current Deductible Amount: If your deductible is already relatively high, raising it further may not result in significant savings. The relationship between deductibles and premiums is not always linear.
  5. Claim Frequency: If you rarely make claims, you might save more over time with a higher deductible since your annual premiums will be lower.

General Estimations:

  • Small Increase in Deductible: Raising your deductible from 1% to 2% could save you between 10% and 25% on your premium.
  • Moderate Increase in Deductible: Increasing the deductible to 3% might save you between 20% and 30%.
  • Significant Increase in Deductible: A 4% or 5% deductible could result in savings of 30% to 45% or more in savings.


  • Financial Stability: Ensure you can afford to pay the higher deductible in the event of a claim.
  • Savings Accumulation: Consider setting aside the money saved on premiums to cover the higher deductible if needed.
  • Comparing Quotes: Always compare quotes from different insurance providers to find the best value and coverage.
  • Risk Tolerance: Higher deductibles mean you assume more financial risk in the event of a claim. Understand your own tolerance for risk before making decisions.


Since there are many factors at play, it’s crucial to get personalized quotes from insurance providers or use online calculators designed for this purpose. Talking to an insurance agent or broker can also provide more accurate information tailored to your specific situation and location.

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769


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