You can also select separate comprehensive and collision coverage deductibles. WalletHub used a similar approach to get sample quotes from Progressive for a six-month collision insurance policy and found these averages:.
Deciding on the best deductible for your needs requires you to consider both your budget constraints and your personal tolerance for risk. If you have a limited budget for auto insurance, a higher deductible might be more desirable because if you don't have any claims, you won't have to pay as much out of pocket for your policy. If you have substantial savings, you might prefer to have a lower deductible and slightly higher monthly payment to avoid having to come up with a larger sum in the event of an accident claim.
The Balance blog notes that you should also consider your likelihood of having a claim. Think about whether you typically drive at rush hour, have a long commute, often travel through busy intersections, or live in an area with a lot of deer or common weather events. In these instances and other high-risk situations, you should consider opting for a low deductible. Low-risk drivers who rarely file claims might be more comfortable with high-deductible policies. When shopping for an auto insurance policy, ask each agent to provide you quotes with various deductibles.
If you would not be able to recoup the cost of your deductible within three years of a claim with the lower premium, consider choosing a lower deductible policy. The age and condition of your vehicle also play a role in the deductible decision.
Unless you can save significantly on your premium cost with a higher deductible, it usually makes sense to go low if you do not drive a new-model car. If you do choose a high deductible, make sure you have money in the bank set aside because a claim can happen at any time.
Your insurance company will not reduce or waive the cost of your deductible. They will write a check directly to your mechanic less the deductible cost.
Would you save money that would equate to that deductible in the case of an incident? That means you would need just over 6 years in order to make up the difference.
If not, you have to pay more out of pocket. This is a basic form of the math. Working with an insurance advisor will take your other deductible variables into account as well and help you arrive at a better decision. Call to speak with one of our advisors. If you have a good driving record, a higher deductible could work in your favor. They might opt for a higher deductible because they feel they have a lower risk of collision. Ultimately, a higher deductible is a higher risk. The lower your deductible, the more coverage and security you have.
How much are you and your family willing to risk? Expensive vehicles cost more to insure. In this case, a high deductible might make sense because you would have higher savings on your premiums.
On less valuable cars, you may not want a high deductible because the cost to repair damage might not equate to your deductible. Collision coverage pays for damage to your car from accidents, which may be easier to avoid than theft and natural disasters, which fall under comprehensive claims.
You cannot choose how much comprehensive insurance to buy. You can negotiate the actual cash value of your car in the event of a total loss by providing different examples of similar cars. Settlements should include taxes and fees you paid at purchase. The exception may be if you file multiple claims in a very short period of time. Comprehensive deductible: How to make the smart choice.
Table of Contents. Jump to Section Comprehensive deductible: Learn what to choose How car insurance deductibles work Why you may not want a high comprehensive deductible How much comprehensive insurance should I have?
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