#1. I t should always make sense to insure your vehicle with a comprehensive and collision policy coverage as much as possible. However, if your vehicle’s worth is below $2000 only, your best choice would be a “minimum liability coverage only” which would cost you as low as $49 a month depending on your driving record and personal profile.

#2. T he higher your deductible ex. $1000 or more, the lower your policy premium would also be. But should the unpredictable happens, most often policy holders are not required to pay out-of-pocket before auto insurance will pay the remaining cost of body repair. If you choose to have your car repaired to your shop of choice, the insurance company will cut a check in the amount of repair estimated by an adjuster concerned, minus your policy deductible.

The remaining cost of repair will then between you and your chosen car body shop to settle. But most often, auto insurance companies have their own contact car body shop which is practically more convenient. These include hassle-free processing of claims and provision of car rental — depending on your policy coverage. But either way, you need to have that out-of-pocket deductible amount to cover the total amount of repair before you can take your car back. Great, if you have a smart way of handling that out-of-pocket.

#3. T he lower your deductible ex. $500 or less, the higher your policy premium would be. Compared to the higher policy deductible, it’s up to you really to figure out given your financial situation. Driving habit and/or the ability to drive safely are important factors to consider as well. Thus, the likelihood or probability of filing any claims depends upon the driving discipline of the policy holder concerned.

#4. M ost people think, to get or avail of a higher deductible makes sense—given the savings you get. Again, it’s up to you to figure out given your driving habit or discipline including that of your family members, budget considerations and in reference to item #2 and #3 above.

#5. I t is just but wise to have your savings derived from higher deductible policy be set aside in case of any car damage claims — in reference to #2 above. And needless to say, this requires a good amount of driving discipline on part of the policy holder to qualify himself or herself — as to which type of coverage & deductible is the best choice.

Note: Since every insurance company has its own terms and conditions, state and local traffic laws to comply with, vis-a-vis the type of policy coverage that a policy holder have bought, statements in this website should not be taken as a general rule, final and/or accurate.

Policy holder concerned should check directly with its insurance company, as to the terms, conditions and process of reporting and/or filing policy claims accordingly.

Other Considerations

Not-At-Fault Claim: In the case of a hit-and-run, not-at-fault claim, and/or other related incidents covered under such policy terms, you may want to check with your insurance provider for complete details of your coverage. In some cases, they may waive any deductible -- depending on the circumstances of the road incident. In a not-at-fault claim, where the other driver has no coverage -- you may want to check with your insurance provider if you have Uninsured Motorist Property Damage (UMDP) coverage.