What is a good deductible for auto insurance?
Asked by: Michel Marvin | Last update: January 5, 2026Score: 4.3/5 (52 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 my deductible be for car insurance?
Generally, drivers tend to have average deductibles of $500. Common deductible amounts also include $250, $1000, and $2000, according to WalletHub. You can also select separate comprehensive and collision coverage deductibles.
Is it better to have a high or low-deductible for car insurance?
Generally speaking, yes, a higher deductible is the better choice long term. Especially if you have a good driving history.
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).
CAR INSURANCE DEDUCTIBLE EXPLAINED
What deductible is 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.
Is it better to have a high or low deductible?
Individuals. You would most likely benefit from a low-deductible plan if you're older, have a chronic condition, or simply receive frequent medical care. Having an LDHP can save you money if you have costly health issues or a larger family.
What is a disadvantage of having a high deductible?
Cons of High Deductible Healthcare Plans
Individuals who are stretched thin for funds may delay or avoid seeking medical treatment due to the high cost of treatment. For example, someone injured may avoid the emergency room if they know it will result in an expensive bill that will be applied to the plan deductible.
Which deductible should I choose?
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.
What does $500 deductible with full glass mean?
For instance, if you're considering full glass coverage with a $500 deductible and an additional cost of $5-$10 per month on your premiums, it means that before your insurer covers any repair or replacements due to glass damages on your vehicle's windshield, sunroof, or even side windows during an accident or other ...
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.
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.
Can the color of your car affect your insurance premium?
Does car color affect insurance rates? The color of your car doesn't affect your insurance rate. Instead, your insurance company uses other information, like your car's age, location, usage, and your driving record, to help determine insurance rates.
What is the average deductible for car insurance?
$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 credit score check required to get auto insurance?
Most insurers use credit checks to create a credit-based insurance score to help set your rate. Some insurers provide auto insurance with no credit check, which might seem appealing if you have a poor credit history.
What is a typical high deductible?
But they come with higher annual deductibles. For 2025, the Internal Revenue Service (IRS) defines a high-deductible health plan as any plan with an annual deductible of at least $1,650 for an individual or $3,300 for a family.
Is it better to have a higher or lower car insurance deductible?
When you're choosing a deductible, keep in mind that you may be more or less comfortable with higher out-of-pocket costs vs monthly costs. A high deductible will lower your overall insurance rate, however it will increase your out-of-pocket costs if you file a claim.
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.
How to get car insurance deductible waived?
Fault determination: Most insurers require you to be not at fault for the accident. Some auto companies may require you to be 100 percent fault-free to have the deductible waived, while others may waive a percent of your deductible based on your percentage of fault.
Is it better to have a low or high deductible?
High-deductible health plans usually carry lower premiums but require more out-of-pocket spending before insurance starts paying for care. Meanwhile, health insurance plans with lower deductibles offer more predictable costs and often more generous coverage, but they usually come with higher premiums.
What is the upside to having a high deductible is car insurance?
Lower Premiums: The most significant advantage of a high deductible is lower premiums. If you're looking to reduce your monthly or annual insurance costs, increasing your deductible is one way to do it.
Why is it not a great idea to have a high deductible?
Large medical expenses: Since HDHPs generally only cover preventive care, an accident or emergency could result in very high out-of-pocket costs. Future health risks: Because of the costs, you may refrain from visiting a physician, getting treatments, or purchasing prescriptions when they're not covered by your HDHP.
How do most people obtain their insurance?
Most people in California get group health insurance through a job. This is also called employee coverage. Employers with 100 employees buy large-group policies, and those with fewer than 100 buy small-group policies. In most cases, group insurance is better than individual insurance.
What is the main disadvantage of choosing a high deductible?
The primary disadvantages of a high-deductible health plan include the high out-of-pocket costs and the potential reluctance to seek medical care due to upfront expenses. While HDHPs have lower premiums, individuals may face financial strain if they need medical services before meeting the deductible.
Why would someone choose a higher deductible?
Pros. Lower monthly premiums: Most high-deductible health plans come with lower monthly premiums. If you anticipate only needing preventive care, which is covered at 100% under most plans when you stay in-network, then the lower premiums that often come with an HDHP may help you save money in the long run.