$500 Deductible Car Insurance: Costs, Comparison, and Best Companies (2026)
A lower deductible will lead to higher premiums than other, higher-deductible options.
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Written byKatie Powers
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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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Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Reviewed byJohn Leach
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John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
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Table of contents
Choosing a $500 deductible can significantly affect your car insurance premium. Raising a $200 deductible to $500 can also lower your monthly payment.
On the other hand, dropping your $1,000 deductible to $500 can increase your monthly insurance coverage costs. While $500 is the most common car insurance deductible amount, it may not get you the lowest premium available to you.
This article helps you compare average costs by deductible level, identify which companies offer quality car insurance policies with $500 deductible options, and identify tips for not only choosing a deductible but also lowering your rate without raising the deductible.
Quick Facts
The average cost of full-coverage auto insurance with a $500 deductible is $186 per month.
Mile Auto, State Farm, and Erie offer car insurance rates lower than the national average.
A $500 deductible is suitable for drivers with a history of at-fault accidents.
Best car insurance with a $500 deductible
The difference between cheap car insurance and more expensive options boils down to which type of coverage and level of customer service you choose. State Farm, Mile Auto, and Erie are the best car insurance companies with a $500 deductible.
It’s also worth noting that while USAA has the lowest average rates, its car insurance is available only to members of the armed forces and eligible family members.
Insurance Company  | Average Monthly Full-Coverage Rate: $500 Deductible | Best For |
|---|---|---|
| State Farm | $115 | Peace of mind |
| Mile Auto | $128 | Low-mileage drivers |
| Erie | $131 | Drivers with few claims |
Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
State Farm: Best for peace of mind
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| 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. | $55/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. | $107/mo |
4.0
Best choiceBased on 16,576 verified driver reviews and ratings
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Showing recent national reviews - See all 7,303 State Farm reviews
Dale
Verified Review
State Farm Insurance
Reviewed in New York on March 31, 2026
I would tell people to stay away from State Farm. I have a good, clean history of driving with no homeowners claims, and it seems like my premiums went up every six months. My premiums have increased by over $300 in the last year or so.
Harriett
Verified Review
Coverage Issues
Reviewed in South Carolina on March 31, 2026
They claim you don't have the coverages you paid for when you're in an accident. They like to say that full coverage isn't a thing, yet when making the policy, it is.
Ben
Verified Review
XXX
Reviewed in Oregon on March 31, 2026
I have received many quotes from others, and no one has been better.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84A.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++Why we picked this company
A century-old insurer that regularly writes the most policies in the market, State Farm is a safe bet for drivers who want an auto insurance policy from a reliable company. Great customer service scores and some of the lowest average rates in the nation may offer drivers peace of mind.
Pros
Market share leader[1]
Long-standing industry reputation
Multiple available discounts
Cons
No guarantee you’ll get your deductible back if you’re not at fault for a claim
No vanishing deductible
Some discounts may not be available in all U.S. states
Mile Auto: Best for low-mileage drivers
| User Reviews | 4.5 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.8 /10 |
| 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. | $70/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. | $120/mo |
4.5
Best choiceBased on 193 verified driver reviews and ratings
How drivers feel about Mile Auto
Drivers appreciate the quality service but find the rates high and claim processing slow.
AI-generated from the text of verified reviews collected by Insurify
Best For
Low-mileage drivers
Senior drivers
Cheap full coverage
How drivers feel about Mile Auto
Drivers appreciate the quality service but find the rates high and claim processing slow.
AI-generated from the text of verified reviews collected by Insurify
Best For
Low-mileage drivers
Senior drivers
Cheap full coverage
Showing recent national reviews - See all 66 Mile Auto reviews
Olanrewaju
Verified Purchase
Reasonable coverage.
Reviewed in Georgia on March 17, 2026
So far, it has been very good.
Leroy
Verified Review
Why was I canceled?
Reviewed in Texas on February 9, 2026
1/14/26: Liked what I saw and purchased Auto Insurance.
1/29/26: Received an email requesting a "Physician's opinion statement." I did not see this requirement in the many pages of fine print. Was given 30 days to submit.
1/31/26: Via email, I requested information on how to cancel my policy and stated that I do not release medical data to anyone. I did not request the policy be canceled.
2/01/26: Relented.
2/03/26: Hand-delivered request to primary care doctor and made an appointment for an Ophthalmologist for 02/10/26.
2/07/26: Received a USPS letter from MileAuto stating the policy would be canceled effective 3/01/26. The reason given was that "Policy no longer meets underwriting requirements." I have no idea what requirements this refers to.
Ronald
Verified Purchase
Monthly Insurance for the Price of Takeout
Reviewed in Ohio on January 11, 2026
I don't drive much, so it makes sense to me. I feel like I would like to have more coverage than just liability. I know they offer more coverage.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
2.18A.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).
NRWhy we picked this company
From downtown dwellers to remote workers, low-mileage drivers can benefit from their limited commute with Mile Auto’s low-cost $500 deductible. At a monthly average of $128, low-mileage drivers pay substantially less than the national average.
Mile Auto’s mile-based policies are designed for people who drive fewer than 10,000 miles per year. Unfortunately, Mile Auto only offers limited full-coverage policies in select U.S. states.
Pros
Pay-per-mile model
AM Best financial strength rating of A (Excellent)
Ideal savings potential for low-mileage drivers
Cons
Lack of info on coverage options beyond comprehensive and collision
Available in only eight states
Policyholders must drive less than 10,000 miles annually
Erie: Best for drivers with a fender bender
| User Reviews | 4.4 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4 /10 |
| 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. | $73/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. | $122/mo |
4.4
Best choiceBased on 500 verified driver reviews and ratings
How drivers feel about Erie Insurance
Customers appreciate the insurer’s excellent customer service and quick claim handling but are dissatisfied with the unexpected and unexplained rate increases. Some also found the policy details hard to understand.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
How drivers feel about Erie Insurance
Customers appreciate the insurer’s excellent customer service and quick claim handling but are dissatisfied with the unexpected and unexplained rate increases. Some also found the policy details hard to understand.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
Showing recent national reviews - See all 228 Erie Insurance reviews
James
Verified Review
Erie
Reviewed in Pennsylvania on March 11, 2026
Good value.
Ernestine
Verified Review
Erie Insurance Works Well
Reviewed in Maryland on March 2, 2026
Prices seem in line and fair. I like being able to pay for full-year coverage.
Robert
Verified Review
One of the Best Auto Insurance Companies
Reviewed in Pennsylvania on March 2, 2026
So far, they seem to be one of the best companies for auto insurance for my age. When shopping around, not only do they have the best price, but they also have one of the highest ratings.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
700NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.68A.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+Why we picked this company
Erie’s already low $500 deductible gets an upgrade with a diminishing deductible, which reduces it by $100 per year of safe driving, capping at $500. Erie’s Rate Lock also helps policyholders retain a set premium even if they file a claim.
Unfortunately, Rate Lock isn’t available in all states.
Pros
Rate Lock can freeze premiums even when you file a claim
Diminishing deductible can save you up to $500
High-ranking Consumer Reports rating[2]
Cons
Limited traditional discounts listed
Rate Lock is a paid add-on
Available in only 12 states and Washington, D.C.
What a $500 deductible means for your car insurance
A car insurance deductible is a maximum set amount that a policyholder agrees to pay when filing a comprehensive coverage or collision coverage claim.
Deductibles don’t apply to liability coverage, and the most common deductible that drivers choose is $500.
Choosing a $500 deductible means you’re responsible for paying up to $500 of your claim before your insurance company will cover the remaining balance. So, if your vehicle damage amounts to $10,000, the insurance company will pay $9,500 after you pay $500 out of pocket.[3]
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Cost differences between a $500 vs. $1,000 deductible
The average annual rate difference between a $500 and $1,000 deductible is $156 — but that doesn’t mean the lower deductible is necessarily cheaper. In fact, raising a deductible from $500 to $1,000 can actually save you 8% on full-coverage car insurance costs.
The more financial responsibility you assume for a claim, the lower your premiums are, because you’re taking on more of the up-front costs. Higher deductibles usually mean lower rates. Lower deductibles generally lead to higher rates.
Choosing between a $500 and $1,000 deductible is a comparison of up-front monthly costs and potential out-of-pocket costs resulting from a car accident:
Choosing a $1,000 deductible could lower your monthly payments by $200 per year when compared to a $500 deductible.
With a $1,000 deductible, you’d need two and a half claims-free years to “save” that $500.
If you have an accident after your first year, you’ll owe an additional $800 to cover the claim ($1,000 deductible limit minus the $200 saved). That’s $300 more than the $500 deductible.
If you had a $500 deductible and didn’t save $200 on your annual premiums, you’d pay $700 for your claim ($500 deductible plus the $200 in extra monthly premiums).
Here, you can see the average annual rate difference between a $500 and $1,000 deductible using Insurify data.
Deductible Amount | Average Annual Full-Coverage Rate |
|---|---|
| $100 | $204 |
| $300 | $192 |
| $500 | $186 |
| $750 | $178 |
| $1,000 | $173 |
Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
You can ask your insurance agent about split deductibles, too, which increase only the collision or comprehensive portion of your deductible. For instance, a driver who’s never been at fault in a car accident may benefit from an increased collision discount. A driver living in an area with limited severe weather perils may benefit from an increased comprehensive deductible.
Average car insurance rates for policies with a $500 deductible
The average cost of car insurance for a full-coverage policy with a $500 deductible is $186 per month. Your rate may be higher or lower, as factors like your driving history, ZIP code, and insurance company influence overall rates.
These factors affect liability policies too, but deductibles don’t apply to most minimum-only car insurance coverages. Some personal injury protection (PIP) policies require a deductible payment before providing coverage for medical bills and miscellaneous medical expenses. That’s why it’s important to get high-deductible and low-deductible insurance quotes when researching full-coverage policies.
Insurance Company | Average Monthly Full-Coverage Rate: $500 Deductible |
|---|---|
| USAA | $108 |
| State Farm | $115 |
| Mile Auto | $128 |
| Erie | $131 |
| Safeco | $149 |
| GEICO | $153 |
| Allstate | $154 |
| Direct Auto | $157 |
| Root | $162 |
| American Family | $165 |
Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
How to determine if a $500 deductible is right for you
Price isn’t the only factor you should consider when choosing a deductible. Your driving history, driving frequency, and even your vehicle type all influence your likelihood of getting into an accident.
Keep these points in mind when determining if a $500 collision and comprehensive deductible is the best option.
Consider your emergency fund
More than 10% of Americans are unable to pay an emergency expense of $400 or more, according to the Federal Reserve.[4] Nearly 40% are unable to pay this amount in full.
Drivers with limited emergency funds may benefit from a lower per-claim cost. Drivers with substantial savings may choose a higher auto insurance deductible and benefit from reduced premiums.
Factor in your driving frequency and risk
Higher premiums aren’t necessarily a disadvantage for drivers. People who commute daily, as well as people who frequently drive in either high-traffic areas or cities with high accident rates, may benefit from a lower deductible. A $500 deductible limits the amount of money paid out at the time of an insurance claim.
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Check your vehicle’s value
Repair costs vary by vehicle make, model, and year. A luxury or new-car owner may benefit from a comprehensive and collision deductible of $500 to keep car repair costs as low as possible when filing a claim.
But older, high-mileage vehicles may not be worth covering with anything more than minimum liability coverage.
Review your claim history
Liability-only car insurance doesn’t cover your property damage when you’re at fault in an accident. If you have a history of accidents, the peace of mind of lower out-of-pocket costs may convince you to keep a $500 deductible per covered claim.
If you review your claim history and discover that all drivers on your policy have an accident-free record, choosing the $1,000 deductible may save you more money over time.
Remember, you can usually change your deductible at any time.
How to lower your rate with a $500 deductible
If you’re confident that you want a $500 deductible, you can still do these things to lower your monthly premiums:
Compare quotes. Always compare car insurance quotes from multiple insurers annually. With so many options, it’s common for auto insurers to lower rates or create incentives for new policyholders. It’s a good idea to compare quotes from at least three to five insurers before selecting a new policy.
Ask about discounts. Most insurance companies offer car insurance discounts, such as discounts for remaining accident-free or for simply opting for paperless billing. By stacking as many discounts as you’re eligible for, you may see significant savings.
Choose an affordable vehicle. Your vehicle safety features, repair costs, and even its model year can affect rates. For example, passenger cars tend to have a higher collision claim frequency than SUVs and pickup trucks. Choosing an affordable vehicle with notable safety awards may help you reduce your rates.
Consider split deductibles. Some car insurance policies offer split deductibles, allowing you to increase your comprehensive deductible while keeping your collision deductible unchanged. Areas of high vandalism may warrant a lower comprehensive deductible. Drivers who have a history of at-fault fender benders may find a lower collision deductible worthwhile.
$500 deductible car insurance FAQs
Like health insurance and homeowners insurance deductibles, it’s important that you make your car insurance deductible work for your lifestyle and budget.
Is a $500 deductible good for car insurance?
A $500 car insurance deductible is the most common deductible amount drivers choose. Some companies offer reduced deductibles as low as $0 to eligible policyholders, while others offer deductibles of up to $2,000.
How much more expensive is a $500 deductible than $1,000?
The average difference between a $500 and $1,000 deductible is $13 per month. Get quotes from multiple car insurance companies for both deductible options to see how much you can save based on your unique driver profile.
Can you change your deductible at any time?
Yes. Many car insurance companies, including Progressive and Farmers Insurance, allow you to change your deductible at any time. Deductible changes usually take effect immediately.
Does your deductible apply to every claim?
Yes. Your deductible is a per-claim amount, not a per-term or per-policy amount. This set amount is your agreement of financial responsibility in the event of an incident.
Do you pay a deductible if the accident is not your fault?
If you file a claim with your insurance company, even if the accident isn’t your fault, you’ll pay your deductible. That said, the at-fault driver’s insurance should cover your damages without you needing to file a claim.
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- NAIC. "2024 Market Share Reports For Property/Casualty Groups and Companies by State and Countrywide."
- Consumer Reports. "Car Insurance Rankings."
- Insurance Information Institute. "Understanding your insurance deductibles."
- Federal Reserve. "Report on the Economic Well-Being of U.S. Households in 2024 - May 2025."
)
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Featured in
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
Featured in