What Is A Good Deductible For Car Insurance??

Collision is often pricier and makes more sense to go with a higher deductible.

For instance, you could go with $100 deductible on comprehensive and $500 on collision.

With insurance costs going up many people are increasing their deductibles to $500 on comprehensive and $1000 on collision.

What does it mean when you have a $1000 deductible?

A higher deductible means a reduced cost in your insurance premium. For example, say your policy has a line of $5,000 in coverage. A low deductible of $500 means your insurance company is covering you for $4,500. A higher deductible of $1,000 means your company would then be covering you for only $4,000.

How much should my collision deductible be?

Choosing a collision deductible

When purchasing collision coverage, you must decide what amount you want for your collision deductible. Typically, you can choose from $100 to $2,500, as car insurance deductibles vary by state and by car insurance company guidelines, though most drivers choose between $250 and $1,000.

Why do insurance companies charge a deductible?

Insurance Policy Deductibles

These are out-of-pocket costs that are required to be paid before the insurance coverage will kick in. Deductibles may be per-occurrence or accumulate as an annual amount. Once meeting the annual deductible amount, the insurer covers the full costs for the rest of the year.

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