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By: Ajay kumar Medagani December. 26, 2018

Gavop analyzed the net savings from home insurance between higher and lower deductible plans in Pharr, Texas using a hypothetical claim amount. The study assumes a higher deductible value of $2,500 and a lower value of $500. The study shows that for an insurance claim of $2,500, homeowners save $1,940 in the total yearly expenditure by choosing the lower deductible insurance plan instead of the higher deductible one. For the lower deductible plan, the median yearly premium paid by citizens is $390 and the total yearly expenditure is $890. For the higher deductible plan, these values are $330 and $2,830. The following graph illustrates these figures.

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The city of Pharr is located in Hidalgo County, Texas. At the state level, the yearly expenditures for an insurance claim of $400 are higher by a margin of $130 for a $2,500 deductible plan than a $500 deductible plan. The statewide median of an insurance premium for a $500 deductible plan is $690 and the total yearly expenditure is $1,090. For a $2,500 plan, these numbers are $560 and $960.

The Gavop study also includes an analysis of home insurance premiums for locations within a 50-mile radius of Pharr. For the same hypothetical claim amount of $700, the residents of Harlingen save $160, while in La Escondida, residents save $130 by choosing the higher deductible plan.

Harlingen’s homeowners pay a yearly premium of $340 and a total yearly amount of $840 for a $500 deductible plan. Under the higher deductible plan of $2,500, they pay a yearly premium of $300 and a total yearly amount of $1,000. In La Escondida, on the other hand, for a $500 deductible plan, the yearly premium value is $410, while the total yearly expenditure is $910. For the $2,500 deductible plan, these numbers are $340 and $1,040.

The following table calculates the net savings from home insurance for the two deductible plans against hypothetical claim amounts in 10 locations within a 50-mile radius of Pharr. In addition, it estimates the average yearly premium and the total yearly cost of insurance for the same locations.

Low Deductible ($500) High Deductible ($2,500)
Place Example Claim Amount Yearly Premium Total Yearly Cost Yearly Premium Total Yearly Cost Net Savings for High Deductible Plans
Texas$400$690$1,090$560$960$130
Hidalgo County, TX$700$400$900$320$1,020-$120
Pharr, TX$2,500$390$890$330$2,830-$1,940
Bluetown, TX$2,500$230$730$190$2,690-$1,960
Harlingen, TX$700$340$840$300$1,000-$160
La Escondida, TX$700$410$910$340$1,040-$130
Juarez, TX$500$220$720$190$690$30
Arroyo Colorado Estates, TX$300$150$450$120$420$30
La Feria North, TX$100$710$810$570$670$140

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ABOUT THE AUTHOR

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Ajay

Ajay Kumar works as a data analyst with Gavop. A (software) engineer by profession, he utilizes his well-established programming skills in big data, to derive insights from a wide variety of data sets. A engineering graduate from JNTU his passion involves analyzing raw data, infographics and other visual aids for research.

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