Alyssa Lane
Progressive offers a range of auto insurance coverages, including comprehensive coverage, which protects your vehicle from damage caused by unforeseen events such as natural disasters, vandalism, fallen objects, and collisions with wildlife. When purchasing a Progressive auto insurance policy, you can choose a comprehensive deductible amount, which is the out-of-pocket expense you agree to pay towards repairing or replacing your vehicle when filing an approved claim. A deductible of $2000 means that in the event of an incident, you will need to pay up to $2000 towards the cost of repairs, with Progressive covering the remaining expenses, up to the actual cash value of your vehicle. The choice of deductible amount impacts your overall insurance rate, with higher deductibles typically resulting in lower insurance premiums.
| Characteristics | Values |
|---|---|
| Insurance deductible | $2000 |
| Insurance premium | Higher premium for lower deductible |
| Out-of-pocket expenses | Lower deductible means lower out-of-pocket expenses |
| Insurance rate | Higher deductible means lower insurance rate |
| Financial risk | Higher deductible means greater financial risk |
| Claims | Lower deductible if multiple claims are anticipated |
| Repairs | Higher deductible means more cash needed for repairs |
| Comprehensive deductible | $100 to $2000 |
| Collision deductible | $100 to $2000 |
| Disappearing deductible | Deductible Savings Bank reduces deductible by $50 per claim-free period |
What You'll Learn
Comprehensive deductible amount
A comprehensive deductible is the amount you pay out of pocket to repair or replace your vehicle after your claim is approved. Comprehensive coverage protects your car from damage caused by unexpected events, such as natural disasters, vandalism, falling objects, collisions with wildlife, fire, theft, and more. This type of coverage includes a deductible that applies every time you file a comprehensive claim.
The comprehensive deductible amount you choose determines your out-of-pocket costs for repairs and also impacts your car insurance rate. A lower deductible generally leads to higher insurance rates but saves you money on repair costs. On the other hand, a higher deductible results in lower insurance rates but increases your out-of-pocket expenses for repairs. Comprehensive deductibles typically range from $100 to $2,000, depending on your state laws and insurance company guidelines.
For example, if you have a $400 comprehensive deductible and file a claim for $1,000 worth of damage, you will pay $400 out of pocket, and your insurance company will cover the remaining $600. It's important to note that if the repair costs are less than your comprehensive deductible, you would typically pay for the repairs yourself since insurers usually only cover damage that exceeds the deductible amount.
When choosing a comprehensive deductible, consider factors such as your budget, the value of your vehicle, your savings, and the likelihood of filing a claim. Additionally, take into account common hazards in your area, as comprehensive coverage primarily protects against events outside of your control.
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Comprehensive coverage
If your vehicle has a high cash value or you cannot afford to repair or replace it out of pocket, comprehensive coverage could be a smart choice. On the other hand, if your vehicle's cash value is relatively low and you have a higher deductible, comprehensive coverage may not be worth the additional cost.
When you file a claim under comprehensive coverage, you will need to pay a deductible. The deductible is the amount you pay out of pocket for repairs or replacement of your vehicle, and it can range from $100 to $2,000 in most states. A higher deductible typically leads to a lower insurance rate, but you will pay more out of pocket for repairs. On the other hand, a lower deductible results in a higher insurance rate but lower out-of-pocket repair costs.
When choosing your comprehensive deductible, consider the common hazards in your area. If you live in an area prone to natural disasters, vandalism, falling objects, or collisions with wildlife, you may benefit from a lower deductible as you are more likely to file a comprehensive claim.
In summary, comprehensive coverage is an optional but valuable addition to your auto insurance policy, especially if you lease or finance your vehicle. It provides protection against unforeseen events outside of your control and gives you peace of mind while on the road.
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Choosing a deductible
When choosing a deductible, it's important to consider your financial situation, driving history, and comfort level with risk. A deductible is the amount you pay out of pocket when a covered incident occurs, and it affects your insurance rate. Selecting a higher deductible typically results in lower premiums, while a lower deductible leads to higher premiums. Here are some factors to consider when choosing a deductible:
Financial Situation: Evaluate your financial stability and ability to pay for repairs or unexpected incidents. If you can afford to pay a larger portion of repair costs yourself, a higher deductible may be suitable. On the other hand, if you prefer lower out-of-pocket expenses, even with a slightly higher insurance rate, a lower deductible might be preferable.
Driving History: Consider your driving history and the likelihood of filing a claim. If you have a history of accidents or frequent claims, a lower deductible could save you money in the long run, despite the higher insurance rate. Conversely, if you rarely file claims, a higher deductible may be more cost-effective, as you'll benefit from lower premiums.
Risk Tolerance: Assess your comfort level with taking financial risks. If you want to avoid substantial out-of-pocket expenses after filing a claim, opting for a lower deductible is advisable. However, if you're comfortable with assuming greater financial responsibility in exchange for lower premiums, a higher deductible could be an option.
Common Hazards: Take into account the common hazards in your area. If you live in a region prone to natural disasters, vandalism, or collisions with wildlife, you may benefit from a lower comprehensive deductible. This is because you're more likely to file a claim, and a lower deductible will reduce your out-of-pocket expenses.
It's worth noting that Progressive offers the optional Deductible Savings Bank feature, which can help reduce your deductible over time if you remain claim-and-violation-free. This feature provides the flexibility to lower your deductible as you maintain a good driving record.
Ultimately, the choice between a higher or lower deductible depends on your personal circumstances and preferences. It's essential to carefully consider your options and select a deductible that aligns with your financial situation and risk tolerance.
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Deductible Savings Bank
The Deductible Savings Bank is an optional feature offered by Progressive that rewards accident-free and ticket-free drivers. This feature can be added to an existing Progressive policy and works by reducing your deductible by $50 for every policy period in which you don't file a claim or have a driving violation. This applies to collision and comprehensive car insurance deductibles.
For example, if you choose a $500 deductible when purchasing your Progressive auto policy, adding the Deductible Savings Bank will lower your deductible to $450 at your next six-month policy renewal if you haven't had any claims or violations. This will continue for each claim-and-violation-free period until your deductible reaches $0. If you do file a claim, your deductible will return to the original amount, and the process will start over.
The Deductible Savings Bank is a way for safe drivers to reduce their financial risk and out-of-pocket expenses in the event of an accident. By consistently driving without incidents, you can lower your deductible over time. This can be especially beneficial if you have a history of filing multiple claims, as it may save you money in the long run.
It's important to note that the cost of adding the Deductible Savings Bank feature may vary, resulting in a higher premium. However, for those who drive carefully and infrequently, this option could be a way to potentially save money on their auto insurance.
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Collision coverage
If you choose not to carry collision coverage and own your vehicle outright, you will have to pay for repairs or replacements out of pocket if you're in an accident. However, if the other driver is at fault, their liability coverage will typically cover the damage. Collision coverage also doesn't apply if you collide with an animal, as this is covered under comprehensive coverage.
When deciding whether to opt for collision coverage, consider the following:
- The value of your vehicle: If your vehicle is brand new or still worth a significant amount, collision coverage can help with expensive repairs or replacements.
- Ability to pay out of pocket: Collision coverage can provide peace of mind if you cannot afford to pay for repairs or a replacement vehicle.
- Whether your vehicle is in storage: If your vehicle won't be driven for an extended period, such as a boat or RV in storage, collision coverage may not be necessary during that time.
The cost of collision coverage should also be weighed against the value of your car and your chosen deductible. For example, if you have a $250 deductible on collision coverage and cause $5,000 worth of damage to your vehicle, you will pay $250, and your insurance company will cover the remaining $4,750.
Additionally, some insurers offer disappearing deductible programs that reduce your collision deductible over time if you have no claims or moving violations.
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Frequently asked questions
A deductible is the amount you pay out of pocket when a covered incident occurs. For example, if you have a $250 deductible and cause $5000 worth of damage to your vehicle, you will need to pay $250, and your insurance company will cover the remaining $4750.
Progressive offers a range of car insurance coverages, including comprehensive coverage, which protects your car from damage caused by unexpected events. When you file an approved claim, you pay the deductible amount, and Progressive covers the remaining approved costs, up to the actual cash value of your vehicle.
A $2000 deductible is a higher deductible option, which typically results in lower insurance premiums. With a $2000 deductible, you would need to pay for repairs or replacements up to $2000 before Progressive's coverage takes effect.
Progressive's Deductible Savings Bank is an optional feature that reduces your deductible by $50 for each policy period without a claim or driving violation. This can lower your deductible over time, potentially down to $0.
A higher deductible can result in lower insurance rates, which can save you money over time if you rarely file claims. It also reduces your overall insurance costs if you can afford to pay for a larger portion of repair costs yourself.
