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Emergency Savings Crisis: 27% of Americans Can't Afford Their Insurance Deductible

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By Susan Meyer
Updated October 7, 2025
Reviewed By Beth Swanson
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Susan Meyer

Senior Editorial Manager

Susan is a licensed insurance agent and has worked as a writer and editor for over 10 years across a number of industries. She has worked at The Zebr…

Credentials
  • Licensed Insurance Agent — Property and Casualty
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Beth Swanson

Insurance Analyst

Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • Associate in Insurance
  • Professional Risk Consultant
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  1. Half of Americans Can't Cover a Month of Expenses
  2. 27% Can't Afford Insurance Deductible
  3. Increasing Your Deductible
  4. What Happens If You Can’t Afford Your Deductible?
  5. Other Ways to Save on Insurance
  6. Methodology

The State of American Savings

In our current economic times, many people’s budgets are strained. As inflation continues to be stubbornly high, with the consumer price index up nearly 3% from the previous year, many Americans are finding that their salaries are not affording what they used to.[1] This, in turn, can mean that people cut necessary expenses, put less into savings, or dip into their emergency savings for both unexpected events and everyday expenses.

The Zebra recently ran a survey asking Americans about their emergency savings and found:

  • 46% of respondents didn’t have enough savings to cover even a month of expenses.
  • 13% reported having no savings at all. 
  • 66% of people had dipped into their emergency savings in the last year
  • 27% of respondents don’t have enough emergency savings to cover their insurance deductible in the event of an accident

We think of insurance as providing some peace of mind that we’ll be able to cover unexpected and emergency expenses as they come up, but what if even the deductible is out of reach?

Nearly Half of Americans Don’t Have Enough Savings to Cover a Month of Expenses

Our survey found that 46% of Americans don’t have enough emergency savings to cover a single month of expenses. This small amount of savings can easily be eaten up by an unexpected expense, such as a home or car repair, or a medical event. 

Interestingly, we see some surprising differences across generations. We often expect younger people to have less savings; however, Gen X respondents were the most likely to report both having no emergency savings or having less than a month of expenses saved. Gen Z actually has the widest margin of respondents who had 1 to 6 months of expenses lined up.

More Than a Quarter of People Can’t Afford Their Insurance Deductible

Without savings, many people are left with big bills after an emergency or unexpected expense pops up. And in fact, two-thirds of respondents in our survey had dipped into their emergency savings in the past year, proving just how important having funds set aside can be.

Insurance policies are intended to help in cases where unexpected events are triggered by covered perils. However, for 27% of people, even the deductible for filing a claim may be out of reach. 

Interestingly, we again broke down the data by generation and found that, strangely, the generation that reported having little to no savings (Gen X) is also the generation most confident they could absorb the cost of their insurance deductible. Meanwhile, Gen Z, who reported a lower rate of emergency savings, reported being less likely to have the cash on hand to pay their deductible.

This seemingly contradictory answer probably implies that older generations are more prepared for emergencies with liquid assets, despite not qualifying them as emergency savings.

Increasing Your Deducible for Savings

Insurance prices are continually rising. And with inflation and tariffs driving up repair costs and increasingly common natural disasters increasing damage frequency, that rise isn’t likely to stop. This is leading many to find car insurance unaffordable.

One of the recommendations for people to make their monthly payment more affordable is to increase the deductible. Your insurance deductible, the amount you pay in the event of a claim, represents your insurance company’s portion of responsibility for a claim. By raising your deductible, you lower what your insurance company pays in the event of an accident. 

Here are the national averages for coverage at the most common auto insurance deductibles (and including liability only as an option).

Average Premium by Coverage Level

Updating data...

Coverage Avg. Annual Premium
Liability Only $597
Full Coverage with $1,000 Deductible $1,554
Full Coverage with $500 Deductible $1,760

Source: The Zebra

 As you can see, the national average savings is around $206 a year, which works out to less than $17 a month. While this isn’t nothing, it’s important before increasing your deductible that you make sure you can afford the higher amount should you actually need to file a claim. 

What Happens If You Can’t Afford Your Deductible?

If you can’t afford your deductible, your insurance claim will likely be delayed or denied until you pay it. That will mean you will be responsible for the full repair cost yourself. 

If the amount of the repair is less than the deductible or if you can negotiate with the repair shop to provide a payment plan, it may then make sense not to file a claim and cover the cost yourself.

Finally, what you should not do is delay reporting an accident or filing a claim while you try to gather funds for your deductible. Not reporting an accident to your insurance promptly and within the deadlines outlined in your policy can lead to denied claims and even having your policy canceled.

Can you change your deductible after an accident?

No, your deductible is locked in when you purchase a policy, and you must pay your chosen deductible if you file a claim. However, you can adjust your deductible for future claims, typically when you renew your policy next. Review your policy or contact your insurance agent for information about changing your deductible.

Other Ways to Save on Insurance

While increasing your deductible can be a way to save money on your monthly payment, you should only do it if you have the money set aside to pay the deductible in the event that you need it. So what are some other ways you might be able to save on your insurance?

Bundle

Bundle your home/renters/condo insurance policy with your auto policy for savings.

Telematics

Safe drivers can find savings in telematics programs that price based on how you drive.

Shop Around

Compare insurance rates and track prices to make sure you're getting the best rate.

Methodology

This survey was conducted through Survey Monkey in October 2025. 1,040 Americans were surveyed. 

Source

  1. Consumer Price Index. [Bureau of Labor Statistics]