The concept of a deductible, or the specific amount that you must pay before the insurance company will pay a claim, can be confusing. For instance, if you’re involved in an accident, and you have a $1000 of property damage to the car, you would be responsible for that entire amount if you have no deductible. And these days, you can accumulate a $1000 dollars’ worth of repairs rather quickly which makes for a very uncomfortable financial situation.
On the other hand, if you have a $200 deductible, you would be responsible for $200, and the insurance company would pay the rest and so on. So if you have a $500 deductible, you would be responsible for $500, and the insurance company would be responsible for the rest.
Likewise, if you’re involved in an accident, sometimes it’s beneficial to place the claim through your coverage even though the other driver may have his or her own. Under those particular circumstances, if you’ve already paid your deductible, you’ll get it back. What’s beneficial about taking that alternative is getting the damage to your vehicle fixed in a timely manner.
Sometimes insurance companies might put off paying a claim under the guise of conducting an investigation, and in the meantime, you’re waiting for their decision without a car to drive. Basically, your specific circumstances would determine what option I would recommend to you.