The average car insurance deductible according to the insurance professionals is $500. This $500 is applied to any claim that you initiate with your insurance company after an accident. You are responsible for the total amount of the deductible before any claims will be paid. Deductibles are part of all insurances, regardless of what you are insuring.
There are other options for deductibles in addition to $500.
States regulate insurance companies in their states and everything that the insurance company does must be approved by the state legislature. If the insurance company wants to raise the rates, the state must approve rate increases. States also determine the maximum allowable deductible that any insurance company can offer.
You can opt for a zero deductible policy; there are policies with a $250 deductible or a $1,000 deductible. There are even insurance policies that will allow for a $2,000 deductible, which is considered a high deductible. The state of California allows for a $2,000 deductible.
The most important thing to remember when choosing your deductible when you are comparing auto insurance quotes is that the deductible will help determine your premium amount. It means that you are responsible for that deductible payment and the insurance company does not need to insure you for that amount. If you have a $3,500 car with $700 damage and you have a $500 deductible, you will be insured for $250 of that claim.
Auto insurance deductibles are paid per incident and not annually like a health insurance deductible.
If you feel that you can keep $2,000 in the bank and your state allows for that high of a deductible, you may wish to lower your car insurance premiums by raising your deductible.
When you compare your quotes, compare the deductibles available to you. It may make a significant enough difference in your annual premium to raise your deductible.
Raise your deductible after you have put aside the money in the bank. You can afford to pay a little more for your premium with a lower deductible while you put your money in the bank in preparation for the change in your deductible to a higher amount.
You do not want to leave yourself without adequate coverage or finances in case of an accident.