How much should my deductible be?

Question

Its almost time to renew my auto insurance policy, and I have a $1000 deductible. Ive thought about going down to a $500 deductible, because I recently had some minor damage to my car (a kid threw a rock at my window and it broke) and my insurance would not pay for it because the estimate was under $1000. Whats the difference between the $1000 and $500? Are the monthly payments different? I am trying to save as much money as I can because Im in school and working part time for minuimum wage. Any thoughts?

Answer 1

Generally speaking, you aren't going to save enough in your auto insurance premium by reducing your annual deductible from $1000 to $500 to make it worth your while.  It is unfortunate that your car  was damaged but you probably would have paid more in the insurance premiums to have a $500 deductible than what you paid to have your car repaired. Stick with your $1000 deductible.

Answer 2

The lower the deductible, the higher the premium.  Your insurer can tell you exactly what the difference is.

Answer 3

Way too many options, states, limits, etc. to estimate what you would have to pay to drop your deductible.

Basically, if you can afford $1,000, keep that deductible. Ask your agent to get you a couple of quotes with different deductibles and see what you come up with. Let him/her know that you are looking to save some money and he/she will be able to help you out.

Good Luck!

Answer 4

You'll have to call your agent for a quote difference, but it's usually about 15% of the collision premium.