If you are using your physical damage coverages, either Collision or Comprehensive, to make a claim for the damages to your car you have a deductible due whether the car is being repaired or found to be a total loss.

When you use your Physical Damage coverages your policy states that a deductible, which you decided on at the inception of your policy, will be due when you place a claim for a covered loss. This means whether your car is being repaired and you have to pay the first $500 (or whatever your deductible amount is) or if the car is found to be a total loss and then the deductible is usually taken from your settlement amount for the actual cash value (ACV) of your vehicle.

A deductible by definition is the amount of money you are required to pay yourself before your insurance coverage begins. If you choose a $500 deductible, any damages under that amount you will pay yourself. Deductibles are a part of insurance policies (such as auto and health) to help lower the cost of your insurance because you are assuming some of the risks yourself.

As mentioned earlier typically if your car is going to be repaired after a covered loss (accident) then you pay out the deductible amount first to the repair shop and then the insurance company pays out their part, the remainder of the repair bill. If your car is not just damaged but found to be a total loss then instead of you paying in your deductible amount to the insurance provider, that amount may be taken out of the settlement amount you would receive for the value (ACV) of your car.

If the amount of the settlement is going straight to a lien holder though then the deductible amount may not be subtracted from the settlement amount but still owed by you. It would depend upon the terms of your policy and the specific situation how the deductible would be taken care of if your car was totaled out but yes, normally the deductible amount is still due.