What is your Car Insurance Deductible?

When you purchase car insurance there are some details that are more important than others. One of these is the deductible that you choose. This is money that you owe before your car insurance company will pay, so you want to make sure that you choose the right deductible. If you do not, you could end up paying too much money each month for coverage, or getting into financial trouble if you ever need to make a claim. Luckily, most car insurance companies offer many options when it comes to this detail.

You will more than likely see two types of deductibles on your car insurance policy: collision and comprehensive. While many people think that these two numbers have to match, nothing could be further from the truth. In other words, your comprehensive deductible can be different than your collision deductible. You need to make a decision on how much you want each one to be based on the pros and cons of each option.

Your collision deductible comes into play when you are in an accident with another car, or simply by yourself. Think of it this way: if you "collide' with something while driving you will need to pay your collision deductible if you make a claim.

Your comprehensive deductible is for things such as a cracked windshield. It is usually better to have a low comprehensive deductible because the repairs that fall under this category are usually less expensive.

In most cases, buyers opt for a lower comprehensive deductible and a higher collision. Of course, this is all based on personal and financial preference. There is no right or wrong way of choosing this level of coverage.

If you do not know what your deductibles are, pull out your car insurance policy and check. There is a good chance that you will want to make a change to either better your situation, or lower your premium price.