Question: What does having a $500 deductible mean?
Answer: A deductible is a dollar amount that the insured chooses as the portion of damages they agree to pay for if filing an auto insurance claim under certain coverages listed on their policy. Usual insurance deductible amounts are $250, $500 or $1000 with the insured choosing the deductible they feel is best for their financial situation.
Insureds typically choose a deductible amount for collision coverage and comprehensive insurance. For example, you had an accident where the damages to your vehicle were $3500 and put in a collision claim with your insurance company you will pay out of pocket your $500 deductible and then the insurance company would take care of the remaining $3000 loss amount.