Which aspect of coverage typically incurs a higher deductible?

Collision or upset coverage generally incurs a higher deductible compared to other types of coverage. This is primarily because collision coverage is designed to cover damage to your vehicle resulting from a collision with another vehicle or object, and the cost of repairs or replacement can often be substantial. Insurers recognize this and often set higher deductibles to balance the cost of claims against premium costs for policyholders.

Having a higher deductible under collision coverage encourages policyholders to share in the financial risk of minor accidents and helps insurance companies manage claim costs. This means that in situations where damage is less severe, policyholders are more likely to pay out-of-pocket, thus keeping insurance premiums more manageable overall.

In contrast, comprehensive coverage, liability coverage, and medical payments coverage typically have lower deductibles because they cover broader risks or liabilities that might not involve direct collision with another vehicle, thereby allowing for more frequent claims without discouraging policyholders from seeking coverage.