What are collision and comprehensive deductibles?
I am officially at that age where my friends are starting to get married, have kids, buy their first houses – and more importantly, they are getting off their parent’s auto insurance policies. Some have made that grown-up move recently, and many made the switch during or just after college. With that said, nearly all of them barely even know what basic liability coverages take care of, much less what their collision and comprehensive deductibles handle.
On each auto policy you will have the option to include comprehensive and collision deductibles, which I highly recommend, especially if you have a newer vehicle or one that is not yet paid off.
Collision insurance covers repairs to your car in the event you hit another vehicle, tree, fence, pole, guardrail etc.
Comprehensive insurance covers damages to your car caused by acts of god like a natural disaster, hail, fire, earthquake or flood, just to name a few.
It will also cover things like vandalism, theft, falling objects and even covers you if you ram into an animal on the road like a deer that could cause extensive damages on your car.
With most carriers, your comprehensive and collision deductibles can range routinely anywhere from $100 to $2,000.
If you are looking to keep your monthly premium on the lower side and save a little bit of money, then you can go with a higher deductible – what I would recommend is going no higher than $1,000.
If you are looking for a more bearable out-of-pocket cost if your vehicle gets banged up, then you should go with a lower deductible. However, keep in mind that doing so will make your monthly premium a little bit higher. If you go that route, then a deducible of $250 or $500 is usually recommended.