There's no doubt about it, higher deductibles equal lower premiums. Your deductible is assumed to be $500 unless you select a different amount. Choosing a higher deductible will lower your premiums. What it all comes down to is what you can afford to pay out of your pocket in the event of an accident for which you are at fault or the other driver cannot be identified (hit and run). Available deductibles for collision and comprehensive coverage are $300, $500, $1,000, and $2,000.

Buying Collision coverage with a "waiver of deductible" provides the following benefits: If you're in an accident caused by an identifiable driver, you don't have to pay your deductible. This is very useful when the other driver isn't insured. You also are not required to pay your deductible when another driver who is insured causes an accident. (His "Damage to Someone Else's Property coverage up to his limit will pay for your damages.)