If you choose to include collision and/or comprehensive coverage in your policy, you’ll need to choose both deductibles and limits.
How do deductibles work? You’ll select a deductible when you meet with your insurance agent initially. It’s what you’ll pay toward a covered claim before your insurance kicks in.
You’ll choose separate deductibles for collision and comprehensive coverage. On average, a deductible is around $500, and can range from $0 to $2,000. Read our frequently asked questions about deductibles for more information.
A limit is how much your insurance provider will pay for your damages after you’ve reached your deductible. For collision and comprehensive coverage, the limit is the fair market value of your car, usually. However, you can choose a higher limit if you so please.