What Is 500 Deductible In Auto Insurance?

When you submit a claim for an insured loss, you must pay a deductible amount from your auto insurance policy. If you’re in an automobile accident and submit a claim, your insurance company will take your deductible from your claim reimbursement.

When it comes to vehicle insurance, the amount of your deductible is often fixed at $500. A claim payment of $5,500 will be sent to you if the insurance adjuster decides your claim is worth $6,000 and you have a $500 deductible. However, if you have a high deductible, not all vehicle accidents are covered. If you slam into a tree and ding your bumper, the repair bill may be as high as $600. To avoid a rise in your rates, you may want to consider paying the whole cost of the damage out of your own money – that is, an additional $100 on top of your $500 deductible.

You have to pay a certain amount of money out of your own pocket in the event of an insurance claim. Deductibles can be either a set financial sum or a percentage of the policy’s overall coverage.

You file a claim, and the repair costs for your vehicle come to $3,000, as an example. Your insurance company will pay the difference of $2,500 if your deductible is $500.

You may save more than the amount of the deductible that you would be required to pay in the event of an accident, though, if you avoid filing any claims for several years.

The choice is yours, based on your financial situation and risk tolerance!

To determine if you can afford a particular deductible, ask yourself this question. If this is the case, raising your insurance deductible is a certain method to lower your monthly rate. Accidents do happen, so don’t forget about it! If that happens, you’ll have to make a payment right away.

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Author

  • Lewis has worked for years as a Corporate Security Manager until he decided to form VPA Net. He deemed all information regarding the internet, especially when it comes to security and research

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