Does raising your home insurance deductible really pay off? That may depend on where you live…

Many homeowners look to raise the deductible on their home insurance policies in order to save more money on their premiums, but a recent study from insuranceQuotes, an online home insurance comparison service, reveals that it’s not always financially sound to do so.

insuranceQuotes commission Quadrant Information Services to conduct its study, which was aimed at measuring the impact of changing your home insurance deductible in each U.S. state. The study used data from the largest insurance firms in the U.S., representing a market share of around 65 percent in each state. Home specifications were standardized in order to give a fairer comparison between states.

The study looked at three different scenarios for raising deductibles in each state, and worked out how much consumers can save on average. The results found that by raising deductibles from $500 to $1,000 resulted in 7 percent savings, while an increase of $500 to $2,000 results in an average of 16 percent savings. Those who raised their deductibles from $500 to $5,000 have the biggest savings however, at a whopping 28 percent.

“Choosing a higher deductible means you share more potential financial risk with an insurer and also makes you less likely to file a claim. In return, insurers charge a lower premium,” said Laura Adams, senior insurance analyst for insuranceQuotes.

A deeper look at the study reveals that savings can vary wildly from state-to-state, however. For example, homeowners in North Carolina see higher savings when they raise their deductible from $500 to $2,000, at 39 percent. However, if they go from $500 to $5,000 they save just 45 percent, which is not much greater, and therefore unlikely to be worth the trade-off. The states of Hawaii, Indiana and Texas offer considerably lower savings however, at less than seven percent when increasing a deductible from $500 to $2,000.

“What you do with your home insurance deductible should depend on where you live,” Adams explained. “If there’s no significant savings, it may not make financial sense to increase your deductible. Be sure to review your coverage every couple of years to make sure your policy and insurance provider is still right for you.”