After deciding on car insurance coverage, your next step should be setting deductibles. Many drivers never realize that the policy purchaser has control over the deductible amount. Just because the policy is set at 500 dollars, that doesn’t mean it can’t be changed. This is even true of policies that are already in effect.
Setting collision and comprehensive deductibles is a balancing act, a delicate dance between cost and coverage needs. If you choose a deductible that is low (i.e. $200-$500 dollars), you will be stuck with a higher premium. When a driver agrees to pay a higher deductible (usually 1,000 dollars or more) in the case of an accident, the monthly costs are considerably cheaper. However, coming up with this amount might be difficult to do on short notice.
So how does one decide? Ask yourself this question: how much am I willing to pay and more importantly, how much money will I have on hand if I had an accident next week? This question can put your deductible choices into perspective.