Auto insurance can be a confusing and overwhelming topic for many people. One aspect of auto insurance that is often misunderstood is the difference between comprehensive and collision deductible. In this blog, we will break down the difference between the two types of deductibles and why it is important to understand them when purchasing auto insurance.

First, let's define what a deductible is. A deductible is the amount of money you will have to pay out of pocket before your insurance coverage kicks in. For example, if you have a $1,000 deductible and you get into an accident that causes $5,000 worth of damage, you will have to pay the first $1,000 and your insurance will cover the remaining $4,000.

Now, let's talk about the difference between comprehensive and collision deductible. Comprehensive coverage is insurance that covers damages to your vehicle that are not caused by a collision. This includes things like theft, vandalism, or damage from natural disasters. The comprehensive deductible is the amount you will have to pay out of pocket before your comprehensive coverage kicks in.

Collision coverage, on the other hand, is insurance that covers damages to your vehicle caused by a collision. This includes things like accidents with other vehicles, hitting a tree or a pole, or rolling your vehicle. The collision deductible is the amount you will have to pay out of pocket before your collision coverage kicks in.

It is important to understand the difference between comprehensive and collision deductible because the amount you choose for your deductible can have a significant impact on the cost of your auto insurance. The higher the deductible, the lower the cost of your insurance. However, this also means that you will have to pay more out of pocket if you get into an accident. It is important to find the right balance between the cost of your insurance and the amount of money you are willing to pay out of pocket in the event of an accident.

In conclusion, understanding the difference between comprehensive and collision deductible is important when purchasing auto insurance. It is important to find the right balance between the cost of your insurance and the amount of money you are willing to pay out of pocket in the event of an accident. Make sure to talk to your insurance agent and understand the different options available to you so that you can make an informed decision.

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