If you cause an accident resulting in $2000 damage to your car and have collision coverage with $500 deductible, which of the following statements is true?

Question

Quizplus · Accepted Answer

With collision coverage and a $500 deductible, your insurance company will pay for the damages above the deductible. Therefore, the total amount to be paid by the insurance company is $2000-$500 = $1500, and you will be responsible for the $500 deductible. The other insurance company is not involved because you caused the accident. Your insurance premiums may go up in the future, but it is not directly related to this accident.

If You Cause an Accident Resulting in $2000 Damage to Your