…does that cover $500 of damage repairs of your vehicle without hiking your premium up?
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…does that cover $500 of damage repairs of your vehicle without hiking your premium up?
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May 18, 2010 @ 7:55 am
It means you have to pay for the first $500.00 toward the damage done to your vehicle, or the other vehicle.
May 18, 2010 @ 8:46 am
It means that your out-of-pocket cost to repair damages from an accident is $500.00. Sometimes, if you are found to be not at fault, your insurance company will recover this money for you from the other person’s insurance company. I know that was the case with me in NY, I think it depends on what state you are in. This was many years ago – before there was no-fault insurance. Your premium should not go up just because of an accident.
May 18, 2010 @ 8:57 am
No, it means if you do something to the car that’s your fault, like running into a tree, if the damage is $650, you pay the first $500 and they make up the balance.
May 18, 2010 @ 9:04 am
Collision coverage covers your car when your car gets in an accident, you hit someone, they hit you, you drive into a building, etc. It covers the damage to your car whether you caused the collision or not. The insurance will pay you the cost to repair (or the value of the vehicle if its totaled) minus your $500 deductible. Then when you get repairs you will have to pay the body shop the $500 plus what the insurance paid you. If your insurance finds that you are not at fault they will attempt to get your money back for you but that is not a guarantee they will be able to. When a claim is paid out on your policy, typically your premium will go up unless your insurance offers something special. The $500 deductible just keeps your current premium lower. If you change your deductible to $100, you premium will go up right now. If you change it to a $1000 it will go down. But then of course if you have an accident you’ll end up paying up to a $1000 for repairs.
May 18, 2010 @ 9:27 am
If you have damage to your vehicle that you caused, you pay the first $500.00 of the repair. If your vehicle is damaged in an accident with an uninsured driver, and you have it repaired under your policy, you pay the first $500.00 of the repair.