How do different coverage amounts affect my premium?
Generally, the more coverage you purchase, the more you’ll pay. Higher auto liability limits, for example, will usually result in a higher premium because you’re getting more financial protection. The same logic applies when you add on full coverage and any optional endorsements. However, your car insurance deductible works a bit differently. Your deductible is the amount you are willing to pay if you file a claim for vehicle damage. Full coverage policies have a deductible for both comprehensive and collision. Higher deductibles generally mean lower premiums since you’re willing to pay more out of pocket, which means the insurance company will pay less. Since you’ll save the company money in the event of a claim, you're likely to see a lower premium.