What deductibles should I choose for Comprehensive and Collision coverages?
Choosing a higher deductible ($500 or $1,000) will help you save money. But, it’s a trade-off between saving money on your annual premium and having to pay the deductible if you have a loss. Here’s a way to think about it. If you choose a $500 deductible instead of $250, you may save $60 a year in insurance premiums. So, if you don’t have a loss for 5 years, that’s a total savings of $300. However, if you have a loss during the 3rd year and you have to pay the higher deductible of $500, you haven’t saved anything. Our advice? Compare how much you can save by checking the price for a few different deductibles when you get a quote. Some companies offer big savings for higher deductibles, while others don’t.
