How to choose car insurance deductibles?

Insurance Forum Auto Insurance
1

I just bought a 2013 Toyota Prius with 186,000 miles, and I need to get insurance. I’m confused about what deductible amounts to choose for comprehensive, collision, and uninsured motorist collision waiver coverage. Can anyone guide me on how to get the best deal?

2

The higher your deductible, the lower your premium, but you’ll need to pay that amount out of pocket if you have a claim. Set a deductible that you can afford to pay immediately without financial strain. Personally, I use $500, but it’s up to your situation. If you can afford $1,000, you’ll save on premiums, but make sure it’s worth it.

3

There’s no universal ‘best deal’—it depends on what you can afford. Higher deductibles lower monthly premiums but increase your costs if you have an accident. Consider how much your car is worth and whether you can pay for repairs or replacement out of pocket. You might want to prioritize higher liability coverage over collision for an older car.

4

It really comes down to what risks you’re willing to accept. For example, if you own the car outright, you don’t need collision coverage, but that means paying for repairs yourself if you’re at fault. Comprehensive is optional too, but it covers things like theft or falling objects. Talk to an actual insurance agent for personalized advice instead of relying solely on online options.

5

Here’s a quick breakdown:

  • Collision deductible waiver: Waives your deductible if the other driver is at fault and uninsured, though it typically requires proof like a coverage denial letter.
  • Comprehensive: Covers non-collision damages (theft, floods, animals, etc.). Keep this deductible lower than collision since the cost difference is smaller.
  • Collision: Go with what you can afford to pay immediately if you had an accident today. $500 is common, but some people choose $1,000 for lower premiums.

Consider the car’s value too. For a 2013 Prius with high mileage, it might not make sense to carry full coverage. If losing the car’s value would be a financial hardship, keep collision and comprehensive. Otherwise, you could skip them and save the money for a replacement car.

6

@Nori
Thank you so much for clearing my confusion. I really appreciate it!