The difference in deductibles

Most people chose to have standard $500 collision and $300 comprehensive deductibles. The thing you need to know about deductibles is you may be paying more for the coverage than you will receive in the event of a claim -- or you may be saving very little money if you chose a higher deductible. Young drivers can pay about $500 a year for collision coverage. If they have a car that is valued at $2000, they will have paid more than they will receive if they pay that premium for four years. If they saved this $500 a year, plus the $500 for the deductible, they would have the money to replace the car themselves rather than a promise that they will receive this money if anything happens.

There is also the option of taking a $1000 deductible over a $500 deductible which can sometimes save money if you have a newer or more expensive car. The downside to this is that in some cases there is not much of a savings and you end up paying the higher deductible if you have a claim.

This is why having an agent is very important. He or she will work with you to help you decide what is best for you. Someone who knows the ins and outs of insurance is a very valuable asset to any consumer.