$500 Deductible Insurance Policy (What does it mean?)
A $500 deductible insurance policy means that you must pay $500 toward car repairs before your car insurance coverage pays the rest of your car damage costs. You can raise or lower a $500 deductible car insurance policy depending on your financial needs.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Oct 20, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 20, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- A $500 deductible insurance policy means that under certain conditions, you must pay $500 towards the repair or replacement of your car
- You can partially control the cost of your insurance premiums by raising or lowering your deductible
- If you need better options for deductibles, you can use a comparison tool to shop for a different car insurance policy
Car Insurance Deductibles
Deductibles allow you to assume some of the risk of getting into a car accident.As a result, your insurance company lowers or raises your premiums, according to the dollar amount of risk you are willing to assume.For example, someone with a deductible of $100 would pay more per month than someone with a $500 deductible, assuming both individuals had the same insurance policy.
Comprehensive and collision insurance policies have deductibles because they pay for damage to your car.
Liability policies do not have deductibles because they only pay for the other person’s accident related expenses.
- Comprehensive – Comprehensive insurance pays for damage to your vehicle that is not the result of a car accident or incident. Comprehensive policies typically cover items like hail damage, falling tree branches, and vandalism
- Collision – Collision insurance pays for the replacement or repairs to your vehicle after you’ve been involved in an accident that was deemed to be your fault
It is important to note that states only require liability insurance coverage.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
How Deductibles Work
When you get into a car accident or something happens to your car while you’re not driving, you must file a claim with your insurance company.If the company approves your claim, they will pay for the repairs to your car minus your deductible, assuming your car can be repaired for less than it is worth.
If your car is totaled via an accident, your insurance company will determine the value of your car just prior to the accident.
Then, they will write you a check for the value of your car minus your deductible.For example, if are involved in an accident that was your fault that causes $5,000 worth of damage and your deductible is $500, your car insurance company will pay $4,500 for the repairs. You are responsible for paying $500.If your $8,000 car is totaled in an accident that was your fault and you file a claim that is approved, your insurance company will write you a check for the amount your car is worth less the amount of your deductible.In this instance, with a $500 deductible, you would receive a check for $7,500
Controlling Your Premiums via Your Deductible
If you need collision insurance as well as liability, you can lower your premiums by raising your deductible.To do this, figure out the amount of money you can always afford to pay if you are suddenly in a car accident.For most drivers, that number is going to be $500, and raising your deductible from $100 or $200 to $500 will lower your monthly premiums because you will be assuming more of the responsibility of getting into an auto accident.If you need a car insurance policy with a higher or lower deductible or need to find a policy that includes collision and comprehensive insurance, start shopping online.Check out our FREE quotes comparison tool below! Just enter your zip code to start!
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.