Is $1000 a High Deductible
Should I raise my deductible now that my teen is driving?
Not automatically. Raising your deductible lowers your premium, which helps offset the cost of adding a teen, but it also means more money out of pocket if your teen is in an accident, and teens statistically file more claims than experienced drivers.
The honest way to decide is to separate two questions. First, can you comfortably pay the higher deductible today, without borrowing or draining an emergency fund, if a claim happened next month? Second, is the premium savings big enough to matter, or so small that the extra risk isn't worth it? If you raise the deductible, consider setting aside the savings in a dedicated fund so the money is there when you need it, rather than already spent.
If you do
Your monthly premium drops, sometimes enough to meaningfully offset the cost of adding your teen. You're taking on more risk per claim, so if your teen causes an accident, you'll owe more before coverage starts. This works best if you have savings set aside to cover that gap without strain.
If you don't
You keep a lower deductible, meaning less out of pocket if your teen files a claim, but your monthly premium stays higher. This suits families who'd rather pay steadily than risk a larger bill at a bad moment. It can also matter if your savings are tight or earmarked elsewhere.
A deductible is only risky or safe based on what you can actually afford to pay out.
