Definition

• 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.