What is your Auto Insurance Deductible?

When buying auto insurance you need to know many things including what you want your deductible to be. This is a very important detail of any auto insurance policy - even if you don't believe this to be true. If you are not careful you may end up choosing a deductible that does not suit your financial situation. This is a detail that is way more important than many people realize.

There are two types of auto insurance deductibles: collision and comprehensive. You need to know that both are important, so don't take either lightly. Comprehensive is for things such as a cracked windshield, and collision is for accidents. You have the ability to have a different amount for each deductible.

Why would I want a high deductible? Since this is the money that you pay before the insurance coverage kicks in, most people opt for the smallest number possible. But this can be a mistake for one very big reason: the smaller the deductible the higher the premium. Can you afford to pay a higher premium every month just so you can pay less should you need to file a claim? This is the question that you need to answer.

The best thing you can do is ask your auto insurance company what your premium would be at different deductible levels. For instance, how much would you pay if both deductibles were $250? How about $500 or $1k? Once you know the answer you can then decide what is best for your budget.

If you are comfortable with your current deductible keep things the same. Just remember that you can make a change to these numbers in the future if necessary.