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What Does a $500 Deductible Mean on an Auto Insurance Policy?


    • The $500 is the amount of the deductible on the auto insurance policy. When a claim is made, the insured party is responsible for paying this amount, while the auto insurance policy pays the rest up to the total amount of coverage.

    Deductible Payment

    • The deductible is often required up front before the insurance company pays for any repairs. It is a standard practice that the deductible is paid directly to the insurance company at the time that a claim is made.

    Deductible Levels

    • The amount of the deductible plays an important role in the cost of auto insurance. Higher deductible policies ($1,000, $2,000, etc.) will have a lower premium cost than policies with lower deductibles. However, the insured must be certain that she can cover the amount of the deductible when a claim is made.

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