Mark Edcel B. Lopez
January 28, 2026
auto insurance deductible, car insurance deductible, collision deductible, comprehensive deductible, save on car insurance, Pillow Pays for drivers, high deductible auto insurance.
Each driver knows that he or she wants to pay less for automobile insurance. In the process of searching for ways to save money, many people have failed to recognize the one advantage they have over the insurance company that truly will lower their premiums: the deductible. The deductible of your auto insurance policy is the key to lower premiums, yet it is also the major financial gamble. That is where the Savvy Driver Savings Framework enters the picture.
Below, we'll outline everything you need to know about your auto insurance deductibles, principally the difference between collision and comprehensive. We'll discuss how increasing your deductible can save you a pretty penny and-most importantly-how a service like Pillow Pays removes the risk from this equation. By the end, you'll be prepared to make smarter, more confident decisions about your auto insurance, keeping more money in your pocket without sacrificing peace of mind. To see how this aligns with our core values, check out our Full Manifesto.
In most cases when we talk to you about your auto insurance deductible, we’re referring to a couple different kinds of coverages that you pay for in advance: Collision and Comprehensive. The kind that has a deductible is Collision and Comprehensive. The kind that does not is Liability. That kind is required by most states and does not involve a deductible.
What it covers: Collision damages your car in case of an accident. This can be in terms of an accident involving another car, or it can be an accident with an object, for instance, a telephone pole, guardrail, or fence.
When you pay it: You pay your collision deductible if it is your fault in the accident, so if another insured driver hits you, his or her liability insurance will cover your repairs and you won’t need to pay your deductible.
What it covers: Full coverage, also referred to as “other than collision,” includes coverage of your car that is damaged in a number of non-collision occurrences. These are:
Theft and Vandalism
Fire
Hail or Flooding
Hitting an animal (e.g., a deer)
Falling objects (like a tree branch)
When you pay it: You must pay the comprehensive deductible each time you make a claim for a covered occurrence.
Insurance firm J.D. Power reports that you may be able to select different deductibles for the collision and comprehensive parts of your policy. For instance, you can select a deductible of $1,000 for the collision part but a smaller one of $500 for the comprehensives.
The correlation between your deductible payment and your premium is a straight inverse correlation: the greater the deductible, the lower the premium.
Why? Because if you select a higher deductible amount, it means that you will share the responsibility of a claim amount. This will lower the risk of the insurer. Hence, the savings will be passed to you.
The Savings: According to The Zebra, a leading insurance website that compares insurance, raising your deductible from $500 to $1,000 could result in saving the driver, on average, 9% of the entire premium rate. This means that if the driver pays $2,000 annual premium rate, he will be saving $180 every year.
The Risk: Thus, in the event of an accident, you would be required to have this $1,000 at all times to repair your car.
At Pillow Pays, we present a solution to exactly this issue. With a Pillow Pays plan, you can go ahead and raise your deductible to $1,000 or more and enjoy premium savings, and we will be the perfect safety net for you. Just pay the shop, and we pay you back when you file a claim.
For drivers, the equation is compelling. The average claim for collision damage is increasing and sometimes exceeds $2,000. Driving without insurance and having a high deductible without a safety net is a huge risk. With Pillow Pays, the gamble becomes a certain win.
A financial advisor at Bank rate says, "A high-deductible car policy is one of the best ways to cut back your premiums, but only if you can afford to pay that deductible. A service that pays back that deductible takes the ‘if’ out of it."
With both our Comfort and Premium plans, you can find a level of protection that matches your deductible and your budget, making it an essential tool for any savvy driver.
Scenario | Low Deductible ($500) | High Deductible ($1,000) | High Deductible + Pillow Pays Comfort ($10/mo) |
|---|---|---|---|
Annual Premium | $2,000 | $1,820 (Save $180) | $1,820 (Save $180) |
Out-of-Pocket on Claim | $500 | $1,000 | $0 (Pillow Pays covers up to $500) or $500 (You cover the rest) |
Annual Cost (No Claim) | $2,000 | $1,820 | $1,940 ($1820 premium + $120 Pillow Pays) |
Net Savings (No Claim) | - | $180 | $60 |
Net Savings (With Claim) | - | -$320 (vs. Low Deductible) | $180 (vs. Low Deductible) |
Note: The Premium Plan also includes coverage of the full $1,000 deductible, which will further embellish the cost-cutting effect.
As shown in the above table, it can be seen that with the Pillow Pays approach, you always end up with saved funds every year, whether you make a claim or not.
Your auto insurance deductible is not some arbitrary figure. It’s a deliberate decision. To gain control over your insurance rates by understanding the difference between collision coverage and comprehensive coverage and by embracing the Savvy Driver Savings Framework, you can start making these decisions for yourself.
A higher deductible is an established way of cutting your premiums, and with Pillow Pays, it is a risk-free option. Not only will you save on your monthly premium, but you also enjoy the comfort that comes with knowing your deductible is taken care of when you need it the most. It is the sensible way of protecting your car as well as your wallet.
Stop overpaying for car insurance. Join the savvy drivers using Pillow Pays today!
1. Do I need the same deductible amount for both collision and comprehensive? You can select different deductibles to suit your preference. Many owners select a lower comprehensive deductible amount since the repair of the overall vehicle might be more costly than a windshield.
2. If another driver hits me and is at fault, do I still pay my deductible? Generally, no. With a clean at-fault accident, the liability coverage in the other car should pay for the repairs, and you wouldn't have to pay your deductible. If the other car has no insurance or is underinsured, you might need to pay your deductible and claim reimbursement from the at-fault party after your own insurance company pays for the deductible.
3. Does Pillow Pays cover both collision and comprehensive deductibles? Yes! Our plans will cover your out-of-pocket deductible contribution for any approved claim under a policy that you may be holding with us. This can be collision or comprehensive.
4. What’s a good deductible amount for a new car? It will depend on your personal finances, but $1,000 is usually a sweet spot for premiums versus the deductible. When you have a Pillow Pays policy, you have the flexibility to set the deductible much higher. You can also visit our Blog.
Insurance Information Institute. (2025). What are the different types of auto insurance?.
Investopedia. (2024). Collision vs. Comprehensive Car Insurance: What’s the Difference?.
Forbes Advisor. (2025). Collision Vs. Comprehensive Insurance.
The Zebra. (2025). How Much Can You Save by Raising Your Deductible?.
Consumer Financial Protection Bureau. (n.d.). What is a deductible in car insurance?.