We would all like to save money when it comes to buying auto insurance, but, as my mother always told me, don’t be penny-wise and pound foolish. If you have never purchased auto insurance before, or even if you have, you should be aware that one of the important decisions you will have to make is at what dollar amount to set your collision and comprehensive deductibles. For these two types of coverage, the deductible amounts will be a determining factor in how much your premium is.
A central rule to remember with auto insurance is: the higher the deductible, the lower the premium but the more you'll pay out of pocket in case of a claim; the lower the deductible, the higher the premium but the less you'll fork over if you have an insured claim.
All auto insurance policies that cover collision and/or comprehensive have a deductible. The deductible is
