Is a $250 deductible good for car insurance?

A good deductible for auto insurance is an amount you can afford after an accident or unexpected event, although most drivers pick an average deductible of $500. Other common auto insurance deductibles are $250 and $1,000, but drivers should take several factors into account before deciding which one is right for them. These include what premium they can afford and how likely they are to file a claim. … read full answer

Since policies with a lower deductible cost more, it can be tempting to choose a high deductible. But your deductible shouldn’t be more than you can comfortably afford to pay out of pocket if your car is damaged. If your deductible is too high, you could be putting yourself in a difficult financial position down the road.

You can choose different deductibles for separate types of coverage, so you should consider how likely you are to file each type of claim. For example, if you live an in an area that is prone to natural disasters, consider getting a comprehensive insurance policy with a low deductible. Similarly, if you’ve never had an accident and you live in a low-traffic area, consider choosing a high-deductible for your collision insurance policy.

Every driver’s financial situation is different, so there is no such thing as a one-size-fits-all deductible. To learn more, check out WalletHub’s guide to car insurance deductibles.

It is better to have a higher deductible for car insurance if you want your premium to be as low as possible. Picking a higher deductible generally results in a lower premium because it puts more of the financial burden on you in the event that you need to file a … read full answerclaim. Still, it’s important to choose a deductible you could afford in the event of unexpected damage, because there’s no way to avoid paying your deductible if you need to file a claim. In other words, a higher deductible is only better for auto insurance if it saves you money on your premium and you can actually afford to pay it.

A deductible is the amount of money you need to pay out of pocket before your insurance company will pay for the remaining covered expenses. Deductibles generally apply to collision and comprehensive insurance, though you may need to pay a deductible for PIP or uninsured motorist coverage, too. Most insurance companies let drivers choose a deductible of $100 to $2,500 when buying a policy.

For more information, check out WalletHub’s guide to car insurance deductibles.