Collision and comprehensive coverages protects you against damage to your auto and can be purchased at a much lower price if you have a higher deductible. Deductibles typically range from $50 to $1,000, which is the amount you pay from your own pocket to repair or replace your auto before you collect from your insurance company.
For example, if you have a deductible of $200 and have a $500 loss, you collect $300 from your insurance company. If a loss of less than $200 occurs, you pay for all of it yourself.
You should choose a deductible you can afford without causing financial difficulty if an accident occurs. A higher deductible will lower your insurance premium costs the most on collision coverage, but you also should consider a higher deductible when you buy comprehensive coverage.
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