Is 500 a good collision deductible?
Asked by: Maggie Pacocha | Last update: October 26, 2025Score: 4.8/5 (41 votes)
How much should my collision deductible be?
Most drivers choose a $500 auto insurance deductible, but policies with higher deductibles cost less. Choosing a plan with a higher deductible to get a lower insurance rate means higher out-of-pocket costs when filing a claim.
Is $500 deductible for car insurance good?
Between the range of deductibles available — which can sometimes be specifically set by an insurance company — $500 is fairly standard.
Is $500 a high deductible?
A higher deductible means a reduced cost in your insurance premium. For example, say your policy has a line of $5,000 in coverage. A low deductible of $500 means your insurance company is covering you for $4,500. A higher deductible of $1,000 means your company would then be covering you for only $4,000.
How much is insurance with a $500 deductible?
Key takeaways. The average cost of car insurance with $500 deductibles for both collision and comprehensive insurance is $2,638 per year. An auto insurance deductible is the out-of-pocket cost a driver agrees to pay before insurance kicks in on a covered accident or incident.
Should you drop collision coverage on car insurance?
Which is better 500 or 1000 deductible?
Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.
What does $500 deductible with full glass mean?
For instance, if you're considering full glass coverage with a $500 deductible and an additional cost of $5-$10 per month on your premiums, it means that before your insurer covers any repair or replacements due to glass damages on your vehicle's windshield, sunroof, or even side windows during an accident or other ...
What deductible is too high?
In 2023, health insurance plans with deductibles over $1,500 for an individual and $3,000 for a family are considered high-deductible plans.
Do I get my deductible back if I'm not at fault?
Yes, if you have to pay your deductible and you were not at fault, you may be able to get it back from the at-fault driver's insurance company. This is called subrogation. Your insurance company will pursue the at-fault driver's insurance company to recover the money paid for the damages, including your deductible.
Is it better to have a higher or lower deductible for car insurance?
When you're choosing a deductible, keep in mind that you may be more or less comfortable with higher out-of-pocket costs vs monthly costs. A high deductible will lower your overall insurance rate, however it will increase your out-of-pocket costs if you file a claim.
What is a good bodily injury coverage?
California's minimum bodily injury liability coverage is $15,000 per person and $30,000 per accident (usually written as $15,000/$30,000). California's minimum property damage liability coverage is $5,000.
Do you have to pay deductible if not your fault?
If your coverage includes a Direct Compensation and Property Damage (DCPD) deductible, you must still pay the DCPD deductible even if you are not at fault.
What is a good amount for deductible?
Standard homeowners insurance deductibles often range from $500 to $2,000, although they can be higher or lower depending on your insurance carrier and budget. With a standard flat deductible, the amount you pay out of pocket typically won't change over time unless you modify your home insurance policy.
What does 500 deductible comprehensive mean?
Example:You have a $500 deductible and $3,000 in damage from hitting a deer. With comprehensive insurance coverage, your insurer will pay $2,500 to repair your car, and you'll be responsible for the remaining $500.
Which deductible should I choose?
Key takeaways. Low deductibles are best when an illness or injury requires extensive medical care. High-deductible plans offer more manageable premiums and access to HSAs. HSAs offer a trio of tax benefits and can be a source of retirement income.
Can I lower my deductible after an accident?
You cannot lower or increase your deductible for the accident that already happened.
What collision deductible should I get?
Before you choose a deductible, most insurance professionals recommend you figure out what you can afford to pay if your car is damaged in an accident. If your budget allows for a maximum out-of-pocket expense of $500, you probably should not choose a deductible higher than $500.
How many claims before State Farm drops you?
Insurers, like State Farm or GEICO, do not have a fixed number of claims that automatically lead to policy cancellation. This is more likely to happen if you have three or more claims, a record of DUI, at-fault car accidents with high bodily injury and property damage costs and other traffic violations.
Who pays deductible in no fault accident?
Policyholders will generally pay the deductible before comprehensive coverage kicks in. Liability insurance. Liability coverage, which is required in California, doesn't involve deductibles but covers damages the policyholder causes to other vehicles, drivers, or property. Uninsured motorist coverage.
Why is it not a great idea to have a high deductible?
Large medical expenses: Since HDHPs generally only cover preventive care, an accident or emergency could result in very high out-of-pocket costs. Future health risks: Because of the costs, you may refrain from visiting a physician, getting treatments, or purchasing prescriptions when they're not covered by your HDHP.
What if I can't afford my deductible?
With regard to healthcare deductibles, always ask if it's possible to negotiate a payment plan. The healthcare provider cannot legally waive the deductible but they can allow you to pay it over time. The challenge comes in when a procedure involves multiple providers, such as with surgery.
Is $750 a high deductible?
In 2023, the median annual deductible for private industry workers participating in HDHP plans was $2,500. For private industry workers participating in non-HDHP plans, 18 percent did not have an annual individual deductible. For the 82 percent with a deductible, the median annual deductible was $750. (See chart 2).
Is it better to have a $500 deductible or $1 000?
A $1,000 deductible is better than a $500 deductible if you're a safe driver because you'll pay lower premiums and hopefully never have to file a claim.
What does it mean if your deductible is $500?
Deductibles in car insurance
Let's say the collision coverage on your car insurance policy has a $500 deductible. You damage your car in a covered accident. It costs $3,000 to repair. You'd pay $500 toward repairs, and your insurer would cover the remaining $2,500.
Do I have to pay a deductible if a rock hits your windshield?
Windshield replacement and glass damage are covered under comprehensive insurance, so you will need to pay your deductible before your insurance will start paying.