2How high should my deductible be?
A deductible is the money you have to pay out of pocket for the repair of your vehicle if you have comprehensive and collision coverage. The higher your deductible, the lower your insurance premiums will be.
While it’s tempting to go up to say $1000, you need to know if you’ll have that should you need to use your insurance. Typically a $500 deductible is common, but it can go even lower than that. The lower it goes, the higher your insurance premiums go, though. So you’ll need to determine where your sweet spot is.
This is also why it’s good to know the value of your car and if you need comprehensive and collision coverage. If your deductible is $1000 and your car is only worth $2000, then it’s not going to be worth it to have to pay out half of the car’s value to repair it. If your repairs are that high and your car is worth that little, your insurance company might call it totaled anyway.