The highest deductible for car insurance is $2,500 with most insurance companies. A car insurance deductible is the amount that a policyholder has to pay out of pocket before their insurer will cover certain claims, so a $2,500 deductible would leave you responsible for paying $2,500.
Choosing a high deductible usually means that you’ll pay a lower premium, which might make a $2,500 deductible sound tempting. But it’s important to pick a deductible that you could afford to pay in an unexpected situation, since there’s no way to avoid it. Most car insurance deductibles fall between $500 and $1,000, which is a more affordable range for the average driver.
A collision deductible waiver helps drivers save money on their deductible after an accident with an uninsured driver. Collision damage waivers typically apply only to accidents where an identified driver without insurance is completely at fault. A notable exception is California, where collision deductible waivers can be used in hit-and-run accidents. … read full answer
When a Collision Deductible Waiver Is a Good Idea
Collision deductible waivers are similar to uninsured motorist property damage (UMPD) insurance, so a waiver is usually redundant if you are already required by your state to have UMPD. In states where UMPD is optional or unavailable, collision deductible waivers can be a great alternative for the same type of coverage. However, keep in mind that you cannot purchase a collision deductible waiver without collision insurance.
Collision Deductible Waiver Cost
The cost of a collision deductible waiver is usually less than $50 for your entire policy term. Although collision deductible waivers can only be used in a limited number of situations, their low cost means they are a good investment if you want to avoid any out-of-pocket expenses in the event that you’re hit by an uninsured motorist.
Finally, it should be noted that collision deductible waivers are different from collision damage waivers, which are sold by rental car companies to cover damage to their vehicles.
Choosing between a $500 and $1,000 auto insurance deductible depends on how much you can afford right now and how much you expect to save for emergencies moving forward. A lower car insurance deductible means you’ll pay less out of pocket in the event of an accident but pay more upfront in premiums. A higher deductible means you’ll pay less upfront in premiums but more in the event of an accident.… read full answer
Drivers nationwide save an average of 8% - 10% on car insurance premiums by increasing their deductible from $500 to $1,000, according to a survey commissioned by InsuraQuotes. But where you live plays a big role in how much you could potentially save by choosing a higher deductible. Drivers in Michigan can save an average of just 4% on premiums by increasing their deductible from $500 to $1,000, while drivers in Massachusetts can save as much as 19%.
Car insurance companies typically use a $500 deductible to give quotes, which means you’ll need to make a point of checking how things change with a $1,000 deductible. In doing so, remember that premium savings from a higher deductible will not always be proportional to the extra out-of-pocket costs after an accident.
As a result, you’ll need to figure out how much you would save on your premium with the $1,000 deductible and whether those savings are worth an extra $500 out of pocket if you have an accident. If not, you might be better off paying a higher premium in return for lower financial risk on the back end. That’s especially true if your vehicle is worth a relatively low amount. For example, if you have an old car that’s only worth $2,500, you don’t want to carry a deductible of $1,000. It’s too close to the total value of your vehicle, which means the replacement cost wouldn’t put much more stress on your finances than the deductible itself.
When choosing between auto insurance deductibles of $500 & $1,000, consider your:
Available revolving credit
It might be worth comparing your premium quote with other deductibles, too. Some companies offer lower and higher options in addition to the more popular $500 and $1,000 deductibles. You’ll commonly see $100, $250, or $2,500 deductibles available on car insurance policies.
Although higher deductibles can keep premiums low, it’s important to think about what you can afford if something happens. You won’t be happy if you can’t get your car fixed because you picked a $2,500 deductible and don’t have enough money to pay it. So, make sure to factor in how much you’ll realistically be able to pay out of pocket without much stress.
No matter what you decide, be sure to set aside enough cash to cover your deductible before you need to make a claim.
The average car insurance deductible is $500. In general, the most common car insurance deductibles are $500 and $1,000, but drivers can usually choose any amount between $100 and $2,000 when they purchase their auto policy.
The deductible amount that you choose should be based on what you can afford to pay if your vehicle is unexpectedly damaged. Higher deductible policies tend to have lower premiums, but if you choose a deductible that you can’t afford, you risk being unable to actually use your insurance coverage when you need it.… read full answer
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