Best Car Insurance with a $500 Deductible (2024)

With a $500 car insurance deductible, you’ll pay less out of pocket if you need to file a claim, but your monthly premiums will likely be higher.

Sarah Brodsky
Written bySarah Brodsky
Sarah Brodsky
Sarah Brodsky
  • 15 years writing about personal finance

  • Created content for Credit Karma, KeyBank, and Thrivent

Sarah is a freelance writer who covers personal finance and economics. She enjoys delving into the details of insurance, credit, loans, and the labor market.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Updated June 16, 2024

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Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

You pay for your car insurance coverage through regular premium payments, as well as a set out-of-pocket deductible required if you file a claim for covered damages.[1] If you buy a policy with a $500 deductible, you’ll owe $500 any time you file a claim for an accident or other covered damages.

Some of the top insurers that offer policies with a $500 deductible include Nationwide, Dairyland, and Progressive.

Quick Facts
  • Nationwide offers the cheapest full-coverage policy with a $500 deductible, at $273 per month on average.

  • Car insurance premiums typically cost more with a $500 deductible than if you choose a higher out-of-pocket amount.

  • Getting quotes from at least three insurers can help you find the best deal on a $500 deductible insurance policy.

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What is a $500 deductible, and how does it work?

A car insurance deductible is the amount you have to pay toward a covered loss when you file a claim. When your insurance company pays out a claim, it subtracts your deductible amount from the value of your claim.

“If you ever get in an accident with another car, and the damage for your car is $2,000 and your deductible’s $500, you’re on the hook for that $500,” says Brian Coughlin, account executive at The Morley Agency. “Then the company pays the first dollar after that, so they would then pay the additional $1,500.”

You usually need to pay your deductible when you file a car insurance claim for property damage, but you don’t owe a deductible on liability coverage. You select your deductible when you purchase a car insurance policy. A deductible can range from a few hundred dollars to $1,000 or more.

Premiums for a policy with a $500 deductible generally cost more than premiums for a comparable policy with a higher deductible. But your out-of-pocket costs when you file a claim are capped at $500.

How much does car insurance with a $500 deductible cost?

The cost of a car insurance policy with a $500 deductible depends on the type of policy you choose. For example, collision coverage, which covers the cost of repairs if your car runs into a vehicle or another object, typically costs more than comprehensive coverage, which protects you in the event of theft, vandalism, and other noncollision incidents.

Additional factors that can affect the cost of insurance include your age, location, credit history, and driving record, as well as your vehicle’s make and model.

Costs also vary by insurer. Average monthly quotes for full-coverage insurance with a $500 deductible range from $273 with Nationwide to $544 with Liberty Mutual. Beyond cost, you should also consider the types of coverage a company offers, how much coverage you want, and the insurer’s reputation with customers.

Insurance CompanyAverage Monthly Quote: Full CoverageInsurify Quality Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
Nationwide$2734.1
Dairyland$294N/A
Progressive$4744.1
Mercury$5323.6
Liberty Mutual$5443.8
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1-to-5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

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*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from June 12, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Best car insurance with a $500 deductible

Finding the best auto insurer with the cheapest $500 deductible policy depends on your specific coverage needs and financial situation. You should explore your options thoroughly before selecting a policy, carefully considering each company’s advantages and disadvantages.

Nationwide, Dairyland, and Progressive provide the cheapest average policies with a $500 deductible, based on Insurify data.

Nationwide

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$84/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$185/mo

In business since 1925, Nationwide is one of the largest insurers, and sells car, homeowners, life insurance, umbrella insurance, and more. In addition to liability, collision and comprehensive, Nationwide provides optional coverages such as towing and labor, rental car, and gap. The company also offers accident forgiveness, and a vanishing deductible that lowers your deductible for each year you drive safely. Nationwide has an A+ rating from A.M. Best for financial stability, and an only slightly higher-than-expected number of customer complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index.

Pros
  • Numerous discount and savings opportunities

  • SmartRide (for safe drivers) and SmartMiles (for low-mileage drivers)

Cons
  • Not available in every state

  • Some discounts and programs not available in all states

Read our Nationwide review
Nikolai - June 15, 2024
Verified

Pricing

It's all good, but too expensive now!

Susan - June 14, 2024
Verified

I can't afford this insurance anymore.

The rates keep rising, but my pay doesn't. I can't afford the insurance anymore.

Huy - June 10, 2024
Verified

Excellent

Excellent

A major insurer operating since 1926, Nationwide offers several different lines of insurance, including auto, homeowners, and renters. The company earned a customer satisfaction score of 868 out of 1,000 in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study and an A+ (Superior) financial strength rating from A.M. Best.[2]

Nationwide customers can qualify for savings through usage-based programs and a variety of discounts — including multi-policy, defensive driver, and safe driver discounts.

Dairyland

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.5
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$84/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$230/mo

Dairyland began as a regional company in Wisconsin in 1953, selling car insurance to drivers who couldn’t get standard coverage. Acquired by Sentry in 1966, Dairyland now sells auto, motorcycle, and off-road insurance nationwide, and still caters to non-standard drivers. The company also sells renters, RV, and life insurance, and car insurance in Mexico. Although Dairyland has many positive customer comments on review websites, it has a slightly higher-than-average number of complaints in the National Association of Insurance Commissioners Customer Complaint Index. A.M. Best, however, gives the company an A+ rating for financial stability and credit.

Pros
  • Many positive customer reviews

  • Provides coverage to drivers who may not be able to get it elsewhere

Cons
  • More complaints than expected with the NAIC

  • Rates tend to be higher than competitors

Read our Dairyland review
Edward - June 16, 2024
Verified

They lied to me

Be careful, they lied to me on the phone multiple times.

Timothy - June 14, 2024
Verified

Terrible Rates and Poor Service

They have the worst service and rates in the entire industry. Period.

Patricia - June 13, 2024
Verified

I Would Like My Rate to Decrease a Little

It's fair, but the only hard thing is getting to a representative.

In business since 1953, Dairyland insures cars, motorcycles, and off-road vehicles. The company earned an A+ (Superior) rating from A.M. Best and an A+ rating from the Better Business Bureau.

The company sells nonstandard insurance and offers discounts for insuring multiple cars, having homeowners insurance, getting a quote ahead of time, paying more frequently than required, and more.

Progressive

Compare personalized, real-time quotes
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.2
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$79/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$134/mo

Although its founding in 1937 makes Progressive comparatively young, it is among the largest car insurers in the U.S. The company offers car, home, renters, commercial, and other types of insurance. Progressive customers can enjoy savings by bundling their car insurance with another type of Progressive policy – typically homeowners or renters. Available discounts range from multi-policy and multi-car discounts, to the Snapshot save driver discount. Progressive has an A.M. Best rating of A+ for financial stability. However, the company has a slightly higher-than-expected number of complaints in the National Association of Insurance Commissioner’s Consumer Complaints Index.

Pros
  • Rewards for good drivers

  • Numerous coverage options and discounts available

Cons
  • Higher-than-expected amount of complaints

  • Ranked 11 out of 15 companies in the J.D. Power Customer Satisfaction Index Ranking

Read our Progressive review
Dave - June 16, 2024
Verified

Rate Hikes

Too expensive.

Jesse - June 16, 2024
Verified

Accident

So far, so good. However, it's very expensive.

Gary - June 16, 2024
Verified

Excellent experience

Go with Progressive Direct!

Progressive was founded in 1937 and offers a wide range of insurance products, including policies for cars, motorcycles, boats, snowmobiles, golf carts, and other vehicles. A.M. Best gave Progressive an A+ (Superior) financial strength rating. And Progressive received a lower-than-average number of customer complaints on the NAIC complaint index.

Progressive provides several ways for drivers to save on premiums, including discounts for bundling policies, owning your home, getting a quote online, going paperless, and paying the full premium up front.

Methodology

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates. With this information, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

$500 deductible vs. $1,000 deductible: Which is better?

You should consider selecting a $1,000 deductible rather than a $500 deductible if you have a sufficient amount of money set aside in an emergency fund. Choosing the higher deductible saves you money on car insurance premiums, but you’ll have to pay up to $1,000 if you experienced a covered loss or damages.

“I always recommend the highest that you are willing to pay [for your deductible], because it does help get the premium down a little bit,” says Coughlin. If an unexpected $1,000 bill would cause financial hardship for you, then you should start with a $500 deductible, even though you’ll pay slightly higher premiums.

With a $500 deductible, you won’t have to pay more than $500 before your insurance coverage kicks in after you file a claim.

Find Car Insurance with a $500 Deductible

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Other ways to lower car insurance costs

You have other ways to lower your premium besides increasing your deductible. If you prefer a low deductible or have already chosen the highest deductible you can afford, you can try the following strategies to keep your car insurance costs low:

  • Bundle insurance policies. An insurer might reduce your premium if you buy multiple auto policies or different types of insurance from the company. For example, you can often get a discount for bundling your car insurance with renters or homeowners insurance.

  • Take a defensive driving course. A defensive driving course can help you improve your skills behind the wheel, and courses usually cost less than $100. Successfully completing a course can earn you a discount of as much as 10% off your premiums, depending on your insurer.

  • Avoid unnecessary claims. Filing lots of claims can lead to higher premiums down the line, so you may want to pay out of pocket for minor dings or scratches. “Even if it’s not really your fault or it’s a little amount that the company’s paying out, it’s always something that the company keeps an eye on,” Coughlin says.

  • Improve your credit score. Many insurance companies consider your credit history when they set your premium. Paying down credit balances, paying bills on time, and monitoring your credit report for errors might help raise your score and lower your insurance costs.

  • Compare prices. The first insurer you approach won’t always offer the most affordable option. You may find a better rate if you get quotes from at least three different insurers.[3]

$500 car insurance deductible FAQs

You have lots of things to think about when choosing an auto policy. Consider speaking to an insurance agent if you have questions about specific policies from a certain car insurance company. Otherwise, find answers to help you navigate the process below.

  • If you have a $500 deductible, can you change it to a different amount?

    You can change your deductible by calling your agent or insurance company and asking for a new deductible. If you raise your deductible in the middle of your policy term, you should get part of your premium back in a refund or credit for the amount of time left in the term.

  • Is it better to have a lower car insurance deductible?

    A lower car insurance deductible may sometimes work better than a higher one, but it depends on what you can afford. A higher deductible results in lower premiums, but you need to have access to out-of-pocket funds in the event of an accident. You should get a deductible that you can comfortably pay out of pocket.

  • Can you get car insurance with no deductible?

    You may find car insurance with no deductible, but it usually only applies for policies that don’t protect you in case of property damage. If you lease or finance your car, your lender will typically require you to buy additional coverage that has a deductible.

  • How often can you change your car insurance deductible?

    Companies typically don’t dictate a specific limit for how often you can change your deductible, but they may not want you to make frequent changes because adjusting it requires insurers to do some extra paperwork.

    If you try to raise or lower your deductible many times within a policy term, the insurer might question why you need to change it again.

Sources

  1. Insurance Information Institute. "Understanding your insurance deductibles."
  2. J.D. Power. "Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Finds."
  3. Insurance Information Institute. "Nine ways to lower your auto insurance costs."
Sarah Brodsky
Sarah Brodsky

Sarah Brodsky is a freelance writer with 15 years of experience covering personal finance and economics. She enjoys delving into the details of insurance, credit, loans, and the labor market. She’s written for publications including Bankrate, CNET, and Investopedia, and she’s created content for brands like Credit Karma, KeyBank, and Thrivent. When she’s not writing, you might find her learning languages or baking pizza. She has an AB in economics from the University of Chicago, and she lives in St. Louis, MO. Connect with her on LinkedIn.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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