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What Collision Deductible Should I Get

Pick the highest deductible you could pay in cash today, since that keeps your premium reasonable without leaving you stuck after a claim.

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Weigh these before you choose a number

What you'd pay out of pocket A higher deductible lowers your premium but means more cash due the day you file a claim. Check your savings honestly, not what you hope to have saved by then.
How the car is financed A lender may require a deductible at or below a certain level as part of the loan. Read your loan or lease paperwork before assuming you're free to pick any number.
Your real accident risk Longer commutes, street parking, or a teen driver on the policy raise the odds you'll use this coverage. If a claim feels likely, a lower deductible pays off more often.
The car's value right now On an older or lower-value car, a high deductible can eat most of what collision would even pay out. Compare your deductible to what the car is actually worth.
Whether you can change it later You're not locked in. Raise or lower the deductible at renewal as your savings or your car's value change.

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Choosing between two deductible levels on a new loan

You just financed a car and the dealer's finance office handed you a quote with a low deductible already built in. Your premium came in higher than you expected, so you called your insurer to ask about raising the deductible instead. You checked your loan agreement first and confirmed the lender only required a maximum deductible, well above what the quote had assumed.

You also looked at your savings and realized you could comfortably cover a higher deductible if you ever needed to file a claim. You raised it to that level, which brought your premium down to something that felt sustainable month to month. A few months later a minor parking lot collision meant you did have to pay your deductible, but you'd planned for exactly that amount, so it didn't throw off your budget. You kept the higher deductible at your next renewal because the math still worked in your favor.

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Now that you know what deductible fits your situation, compare quotes at that deductible to see who prices it best.

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Raising your deductible instead of keeping it low

If you do

Your premium drops, often noticeably, and stays lower every renewal as long as you keep the higher deductible. If you're ever in an accident, you'll owe more upfront before coverage pays out, so you need that amount sitting in savings and ready.

If you don't

You pay more every month for a lower deductible you may never use. If you do file a claim, you'll owe less out of pocket at that moment, which matters most if you don't have extra savings set aside right now.

Is a lower or higher deductible better for collision?

Neither is better on its own, it depends on what you can afford to pay after an accident. The lower deductible costs more every month but less at claim time. The higher one saves you money monthly but requires that you actually have the difference saved. Compare the premium difference between the two against how many months it would take you to save that difference, and check whether your lender requires a maximum deductible before deciding.

Does raising my deductible affect gap or new car replacement coverage?

It can, since those coverages are often calculated based on what collision would pay, and a higher deductible lowers that payout. Check with your insurer how gap or new-car replacement is structured on your policy before raising your deductible. If either coverage pays a fixed amount regardless of deductible, this won't matter, but if it's tied to your collision payout, a high deductible could leave a bigger gap than you expect.

Should my deductible match my comprehensive deductible?

Not necessarily, since collision and comprehensive cover different risks and can carry different deductibles. Comprehensive often covers lower-cost events like weather or glass damage, so some drivers keep that deductible lower while raising their collision deductible. Check your policy to see if they're currently set the same, then decide separately based on how likely each type of claim is for you and what you could afford for each.