Deductibles are payments toward a loss before your insurance company pays a claim. The higher your deductible, the more money you save on premiums. Most insurance companies require a deductible of at least $500 but if you raise it to $1,000 you could save up to 25%. If you are in an at-risk area, your insurance may have a separate deductible for specific kinds of damage. For example, if you live in a state where hail storms are common, you will have a separate deductible for hail, or if you live in an earthquake-prone area, your earthquake policy has a deductible.