Yes, there are different types of car insurance deductibles. The two main types are:
Collision deductible
This is the amount of money you agree to pay out of pocket if your car is damaged in a collision with another vehicle or object. For example, if you have a collision deductible of $500 and the repair cost is $2,000, you would pay $500 and the insurance company would cover the remaining $1,500.
Comprehensive deductible
This is the amount you agree to pay if your car is damaged in a non-collision event, such as theft, vandalism, fire, or weather-related incidents. For instance, if you have a comprehensive deductible of $1,000 and the repair cost for hail damage is $3,000, you would pay $1,000, and the insurance company would cover the remaining $2,000.
You can often choose the amount of your deductible when you purchase car insurance. Typically, the higher the deductible you choose, the lower your insurance premium will be. However, it’s essential to select a deductible amount that you can comfortably afford to pay if you need to file a claim.
Different insurance companies may offer varying deductible options, so it’s a good idea to compare quotes and policies to find the one that best fits your needs and budget.
