Car deductibles: how much risk are you taking for the saving?
A higher deductible exchanges a certain annual premium saving for a larger payment if a covered claim occurs. The useful question is whether the saving justifies that exposure and whether the cash would be available at an inconvenient moment.
The question that matters
A higher deductible exchanges a certain annual premium saving for a larger payment if a covered claim occurs. The useful question is whether the saving justifies that exposure and whether the cash would be available at an inconvenient moment.
Build the evidence
Compare quotes for the same vehicle, drivers and benefits. Identify separate deductibles for collision, glass, theft and young drivers rather than assuming one number applies to all events. Include any mandatory garage arrangements.
A hypothetical case
If raising a deductible from CHF 500 to CHF 1,000 saves CHF 100 annually, one relevant claim creates CHF 500 more personal cost. Five claim-free years offset that difference arithmetically; this is not a prediction of claim frequency or total insurance value.
Compare the right conditions
Compare the maximum immediate cash need and the annual saving. Examine multiple claims and deductibles that stack under the terms. Ask how a lower-cost repair is handled and whether payment changes if the chosen repairer is outside the partner network.
Limits and uncertainties
The simple break-even calculation ignores premium changes, bonus effects and different claim types. It also assumes otherwise equivalent cover. An emergency reserve should not disappear merely because a quotation offers a smaller recurring bill.
Build a claim-year comparison
Using the fictional CHF 100 premium saving, compare a claim-free year, one qualifying claim and two qualifying claims. If each claim separately attracts the CHF 500 additional deductible, the extra personal cost is CHF 500 or CHF 1,000 before considering other rules. The annual premium saving remains CHF 100 in this simplified illustration. Do not multiply blindly if the contract groups related damage or applies a different deductible to the second event. Ask how the deductible is applied when repair costs are smaller than it, and whether a young-driver retention is additional or replaces the ordinary figure. Keep these assumptions visible. A deductible comparison is meaningful only for the same valuation, event cover and repair arrangement. A discount combined with fewer benefits should be analysed as two changes. The arithmetic clarifies exposure; it does not forecast the coming year’s accidents or make a claim-free period certain.
Fund the choice before accepting it
Consider a household that can access only CHF 700 without borrowing. A CHF 1,000 retention may be awkward even if the long-run comparison seems attractive. Place the proposed deductible beside a realistic repair estimate and the cash reserve that would still remain for rent or medical bills. If you choose a higher figure, consider saving the premium difference in a designated buffer instead of spending it immediately. Ask about excesses for theft, glass and collision separately; a headline deductible may describe only one module. Revisit the decision after an income change, not only after a claim. Also check whether an insurer’s partner-repair option changes the deductible and what practical conditions accompany that change. A lower out-of-pocket amount tied to an inconvenient location is a different trade-off from an unconditional reduction. The useful outcome is an amount you can actually carry, with its conditions understood.
Your practical next step
Request three deductible variants and put their savings beside your available reserve. Choose a level you can fund without debt, then reassess if the vehicle value or household finances change.
Sources and further reading
Original Clearwise analysis. External reporting provides context; rules and contract terms must be verified with the competent authority or provider. Some press articles may require a subscription.
Apply this to your situation
Compare your actual documents and clarify what matters before making a commitment.
Request a free consultationGeneral guidance, not a binding quote or personalised legal, tax or investment advice. Examples are hypothetical and results are not guaranteed.
