What is a good collision deductible?
Asked by: Margaret Braun | Last update: December 25, 2025Score: 4.2/5 (56 votes)
Is it better to have a $500 deductible or $1000?
Generally speaking, yes, a higher deductible is the better choice long term. Especially if you have a good driving history.
How much should your collision deductible be?
What's the average car insurance deductible? There aren't any hard statistics on this, but industry sources say a $500 deductible is considered “standard.” There are good reasons to opt for a higher deductible, though…
What is a good amount for a deductible?
Standard homeowners insurance deductibles often range from $500 to $2,000, although they can be higher or lower depending on your insurance carrier and budget. With a standard flat deductible, the amount you pay out of pocket typically won't change over time unless you modify your home insurance policy.
Is a 1500 deductible too high?
In 2023, health insurance plans with deductibles over $1,500 for an individual and $3,000 for a family are considered high-deductible plans.
What is comprehensive & collision coverage on your auto insurance policy?
Is a $3000 deductible high?
The IRS defines high-deductible health plans for 2023 as: Individual plans with deductibles of at least $1,500. Family plans with deductibles of at least $3,000.
Is a 2000 deductible good for car insurance?
WalletHub notes that you can save about 6 percent by choosing a $2000 deductible instead of a $1000 deductible, which may or may not make sense depending on the price of your policy. As Bankrate notes, you will not have to pay your deductible for a claim if another driver caused the accident.
Is it better to have a higher or lower deductible?
Key takeaways. Low deductibles are best when an illness or injury requires extensive medical care. High-deductible plans offer more manageable premiums and access to HSAs. HSAs offer a trio of tax benefits and can be a source of retirement income.
Do I pay a deductible if I hit a car?
Liability coverage, which is required in California, doesn't involve deductibles but covers damages the policyholder causes to other vehicles, drivers, or property.
Is $750 a high-deductible?
In 2023, the median annual deductible for private industry workers participating in HDHP plans was $2,500. For private industry workers participating in non-HDHP plans, 18 percent did not have an annual individual deductible. For the 82 percent with a deductible, the median annual deductible was $750. (See chart 2).
What deductible is good for collision?
Common deductibles generally range from $250 to $1,000, however, the value of your car is an important factor to keep in mind when determining your deductible amount. Collision coverage has a limit, which is the maximum amount your policy will pay toward a covered claim.
What is a good bodily injury coverage?
California's minimum bodily injury liability coverage is $15,000 per person and $30,000 per accident (usually written as $15,000/$30,000). California's minimum property damage liability coverage is $5,000.
What is a typical comprehensive deductible?
Your insurer will offer comprehensive deductible amounts in set increments, such as $500, $1,000 or $1,500. Choosing a higher comprehensive deductible generally means your premiums will be lower, which can save money upfront. However, you may have to pay more out of pocket toward a covered claim.
Do you want a high or low collision deductible?
A higher deductible means a higher out-of-pocket cost when you file a collision claim, but you also get a lower car insurance rate. If you'd like to save money now and you're confident you could afford a larger, one-time expense if you have an accident, a higher deductible might be a better fit.
Is $2000 a high deductible?
In an HDHP, the deductible is $1,400 or more for individuals and $2,800 or more for families. For example: If you have an HDHP with a $2,000 deductible, you must pay the first $2,000 of your medical bills in a year.
What is the disadvantage of having a higher deductible?
Cons. Higher deductible: If your deductible is higher, it means you are required to pay for your medical care out of pocket up to that amount before your health plan begins to help pay for covered costs. The exception is for preventive care, which is covered at 100% under most health plans when you stay in-network.
How much is a collision deductible?
Collision deductible options typically range from $0 to $2,500 and may even go higher.
Do I get my deductible back if I'm not at fault?
Yes, if you have to pay your deductible and you were not at fault, you may be able to get it back from the at-fault driver's insurance company. This is called subrogation. Your insurance company will pursue the at-fault driver's insurance company to recover the money paid for the damages, including your deductible.
Do I have to pay deductible if I was not at fault AAA?
For collision claims, the deductible generally applies. In most markets, when you're not at fault for an accident, we can waive the deductible if we can identify the other party, that they're at fault, and their insurance carrier confirms they have valid liability coverage for the accident.
What deductible is too high?
The deductible is separate from the monthly premiums. For individuals, a health plan can qualify as high deductible if the deductible is at least $1,350, and the max out-of-pocket cost (the most you'd pay in a year for medical expenses, with insurance covering everything else) is at least $6,750.
What should I set my car insurance deductible at?
$500 is the most common car insurance deductible. Not every type of car insurance coverage uses a deductible. A higher car deductible can lower your insurance premium. You pick your deductible when buying insurance.
Is a $0 deductible good?
Health insurance with zero deductible or a low deductible is best if you expect to need major medical care in the upcoming year. Even though you'll pay more for the plan, it will help you save overall because the full benefits begin right away.
Is it better to have a $500 or $1000 deductible?
Since a lower deductible equates to more coverage, you'll have to pay more in your monthly premiums to balance out this increased coverage. A survey commissioned by InsuraQuotes found that an increase in deductible from $500 to $1,000 had an average of 8-10% reduction in premium costs.
Do I need comprehensive and collision?
Unlike property damage liability insurance (which covers damage to other people's property), collision and comprehensive insurance are optional in California.
Can you change your deductible after an accident?
You cannot lower or increase your deductible for the accident that already happened.