What is the deductible for collision insurance?
A deductible for collision insurance is the amount of money you have to pay out of pocket before your insurance starts to cover the costs of damages to your car caused by a collision. Deductibles can vary depending on your insurance policy, but common amounts are $500 or $1,000. Choosing a higher deductible can lower your insurance premiums, but it means you will have to pay more if you are in an accident. It’s important to understand your deductible and make sure you have enough money set aside to cover it if needed.
