Car Insurance 500 Deductible is the amount you pay for auto coverage policies before your insurance plan begins to make payment. Meanwhile, through this content, you will be getting more information on 500 deductibles for car insurance so you should read on for more understanding.
Car Insurance 500 Deductible
A 500-car insurance deductible is regarded as the most common and it is certainly a good choice if budget is an issue or you have a low-value car. Going further, the car insurance deductible is paid out of pocket by insurance holders when an accident occurs before the insurance company comes into the situation.
What is Car Insurance Deductible?
A car insurance deductible is referred to as the amount of money to be paid by an insurance holder out of pocket for an accident before your insurance company pays the rest. Going further, collision, uninsured motorist, comprehensive, and personal injury protection are all coverage types that have car insurance deductibles.
Best Car Insurance Companies with a 500 Deductible
Some well-known insurance companies have 500 deductibles and some of them will be listed below.
- Geico.
- State Farm.
- Travelers.
- USAA.
- Erie.
Listed above are some of the best car insurance companies with a 500 deductible.
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Some things you need to know About Car Insurance Deductibles
Below are some of the things that you need to know about car insurance deductibles, so it is best for you to read and have more enlightenment.
- If you are at fault in a collision, then you certainly can’t avert a deductible.
- The average car insurance deductible is $500.
- Not all car insurance types make use of car deductibles.
- The higher the car insurance deductible the lower your car premium will be.
- Several drivers pay a deductible when they are not at fault, but there are some exceptions.
As stated above are some of the things that you need to know about car insurance deductibles.
Which types of Car Insurance have a Deductible?
There are certainly different types of insurance coverage and some of them have deductibles while others don’t. if you read on, the ones that have and the ones that don’t will be listed for you to read through.
- Collision Insurance – deductible.
- Comprehensive – deductible.
- Uninsured Motorist Bodily Injury Coverage – No deductible.
- Uninsured Motorist Property Damage Coverage – deductible.
- Mechanical Breakdown insurance – deductible.
- Medical Payments Coverage.
- Liability Insurance – No deductible.
Factors that you should consider when Choosing a Deductible
There are some factors that you certainly need to consider when making choices for deductibles and they will be listed below.
- Your savings.
- The value of your car.
- The amount that you are willing to spend.
- Likelihood of filing a claim.
- The cost of a lower deductible per month.
- Whether or not your lease needs a specific deductible.
- The cost of a higher deductible will lower your premiums.
Listed above are some of the factors that you should certainly consider when choosing a deductible.
When do you have to pay Car Insurance Deductibles?
There are actually cases where you have to make payments for your insurance deductibles and one of them is when you are the cause of an accident that occurred and your vehicle is damaged. Well, you certainly expected to file a claim that makes use of collision insurance.
However, there are also situations where you are at fault for an accident that happened and you got injured. Then you will have to file a deductible for PIP (Personal Injury Protection) as well and also situations occur where you will have to pay a deducible even though you are not at fault.
Other Examples of when you have to Pay Car Insurance Deductibles
There are other examples of when you have to pay car insurance deductibles and some of them will be listed below for you to read through.
- The moment when you make use of PIP insurance to make payment for your own medical expenses aside from who is at fault.
- When you file a claim through your collision insurance after accidents you cause.
- When you make use of your comprehensive insurance that will certainly cover damage to the vehicle.
- When you make use of uninsured motorist property damage insurance to cover damages to your vehicle after an accident has occurred with an uninsured or underinsured driver.
- When an accident occurs and the fault is shared, then you make use of your own insurance to pay for your vehicle damage and medical expenses.
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When are you not required to pay your Car Insurance Deductible?
There are cases that are usual where you don’t have to make payment when another driver that is insured hits you. Also, in this type of situation, the driver’s liability insurance coverage will certainly offer payments for the repair purpose. Moreover, there are cases when you can decide on your own to make the repair on your vehicle while your insurance company determines where the fault is from.
Going further, in this case, or the situation that is been discussed, you are required to make your deductible payment beforehand. Then still on that, your insurance provider will get the full reimbursement from the drivers that caused the damage through the aid of a “Subrogation Claim”.
Also, aside from that if you are blamed for an accident, it is certainly required for you to pay for a deductible that will ensure your liability covers the cost of medical expenses and repair of the victim involved.
How to Avoid Paying Car Insurance Deductibles
There are ways in which you can avoid paying car insurance deductibles and one of them is by asking your mechanic to waive the deductible in return for your business. There may also be additional cases where your insurance company may waive your deductible for comprehensive insurance when it is for a glass repair claim.
Going further, you need to keep in mind that there is nothing much you can do to avert a collision insurance deductible when you are at fault for an accident and also to get your vehicle repairs covered.
Frequently Asked Questions
This section of the article will provide some of the frequent questions that are been asked by people about Car Insurance 500 Deductible for you to be more enlightened.
Is a 500 deductible good for car insurance?
A lower deductible such as $250 or $500 will mean higher auto insurance rates. And it is because the lower the deductible the more your car insurance company will need to pay out if you make a claim.
How much will a 500 deductible cover?
With a $500 deductible, you would only pay $500 towards the repairs, while your insurance company would pay the rest.
Is 500 deductible full coverage?
A full-coverage car insurance policy can have a $500 deductible, but you will generally have options ranging from $100 to $2,500.
Should I get a 500 or 1000 deductible?
A $1,000 deductible is better than a $500 deductible if you can afford the increased out-of-pocket cost in the event of an accident.