When choosing an auto insurance policy, few decisions impact your wallet more than the deductible you select. At Loya Insurance, a company known for walk-in convenience, representatives will help each customer find the right deductible amount that fits their needs and budget. 

Because Loya attracts many drivers who want the lowest possible monthly payment, understanding how deductibles work is essential. The wrong deductible could leave you with a huge unexpected bill, while the right one can help you balance cost and protection. This guide explains everything you need to know about Loya Insurance deductibles — what they are, how they work during a claim, how they influence your premiums, how lenders handle deductibles, and how to choose the right amount for your budget and lifestyle.

What a Deductible Actually Is

A deductible is the amount of money you pay out of pocket before your insurance company pays for repairs. The deductible only applies to coverages that protect your own vehicle, not someone else’s. Many drivers misunderstand this distinction, especially those who purchase Loya’s very popular liability-only policies.

Deductibles apply to:

• Collision coverage
• Comprehensive coverage

Deductibles do not apply to:

• Liability coverage
• Uninsured/underinsured motorist bodily injury
• Personal Injury Protection (PIP)
• Medical Payments (MedPay)

If you only carry liability insurance, you do not have a deductible because Loya would never be paying to fix your own car. Deductibles come into play only if you buy full coverage. This is why drivers with older vehicles or extremely limited budgets often choose liability-only — they avoid paying for coverage that requires a deductible.

Common Deductible Options at Loya Insurance Company

Loya Insurance offers several deductible levels depending on your state, driving record, vehicle type, and financing requirements. While available options may vary by location, the most common choices include:

• $500 deductible
• $1,000 deductible
• $1,500 deductible
• $2,000 deductible
• Occasionally $250 (typically for newer vehicles or preferred drivers)

Most Loya customers choose either $500 or $1,000 because they offer a balance between affordability and manageable out-of-pocket costs. High-risk drivers may only qualify for higher deductibles because the insurer wants to limit claim costs.

If you walk into a Loya office, the agent often recommends a deductible that meets your lender’s requirement (if the car is financed) and your personal budget.

How Deductibles Affect Your Monthly Premium

Deductibles and premiums work like a seesaw – when one goes up, the other goes down.

Higher deductible = Lower monthly premium
Lower deductible = Higher monthly premium

Choosing a lower deductible shifts more risk to the insurer. Drivers who select a $250 deductible will pay more each month because Loya will pay more during a claim. Drivers who select a $1,500 or $2,000 deductible take on more personal responsibility, so Loya charges less.

Typical savings examples:

• Moving from a $500 deductible to $1,000 may save 10%–20%
• Moving from $1,000 to $2,000 may save even more, but increases your risk

This is a key reason budget-focused customers often choose higher deductibles — they’re willing to take on more financial responsibility in exchange for lower monthly payments.

Which Coverages Use a Deductible at Loya

Only two parts of a full-coverage policy use a deductible, and each works differently.

Collision Deductible

This applies when your vehicle is damaged in a crash you caused or incidents such as:

• Hitting another car
• Backing into a pole
• Damaging your vehicle on a curb or pothole
• Colliding with a fence or structure

It may also apply when an uninsured driver hits you — unless your policy includes Uninsured Motorist Property Damage (UMPD), which varies by state.

Comprehensive Deductible

This applies when your vehicle is damaged by events not caused by a collision, such as:

• Theft
• Vandalism
• Fire
• Hail
• Flood
• Animals
• Falling objects
• Broken or cracked windshield

Some states allow $0 glass deductibles, but Loya rarely offers this option because it increases claim frequency and costs.

Collision and comprehensive deductibles can be different amounts. For example, you could choose $500 comprehensive and $1,000 collision.

How Deductibles Work During a Loya Insurance Claim

Understanding how deductibles apply during a claim helps prevent surprises. The deductible is subtracted from any payout Loya issues for your vehicle.

Collision Claim Example

Repair cost: $4,000
Your deductible: $500
Loya pays: $3,500
You pay: $500

Comprehensive Claim Example

Hail damage repair: $2,200
Your deductible: $1,000
Loya pays: $1,200
You pay: $1,000

Total Loss Example

If your car is totaled, Loya calculates your vehicle’s actual cash value (ACV), then subtracts your deductible from the settlement.

Car value: $6,000
Your deductible: $1,000
Loya pays you: $5,000

Some drivers are surprised to learn that even during a total loss, the deductible still applies — but it always does.

Why Loya Often Requires Higher Deductibles for High-Risk Drivers

Loya serves many drivers with:

• Tickets
• Accidents
• DUIs
• License suspensions
• Lapses in coverage
• No prior insurance
• Limited driving experience

Because these drivers statistically file more claims, Loya may restrict them to higher deductibles to manage risk. Examples:

• Drivers with multiple accidents may only qualify for $1,000+ deductibles
• Teen drivers may be limited to higher deductibles
• Drivers with expensive vehicles may be required to carry full coverage but with high deductibles

High-risk drivers usually face fewer deductible options, and this is common across all non-standard insurers – not just Loya.

Deductibles and Financed Vehicles

If your vehicle is financed or leased, your lender has a say in your deductible. Most lenders require:

• Full coverage
• A collision and comprehensive deductible of $500 or $1,000

Some lenders have stricter rules, requiring:

• Maximum deductible of $500
• Insurance verification before the release of the car
• Immediate proof of full coverage

If you choose a deductible higher than what your lender allows, they will reject your insurance declaration page. This can delay financing, or worse, trigger forced-placed insurance — a very expensive alternative.

Loya agents at walk-in locations deal with this issue constantly and can adjust your deductible on the spot to meet your lender’s requirements.

Common Mistakes Customers Make With Loya Deductibles

Choosing the wrong deductible can cost you money. These are the mistakes Loya customers make most often:

Choosing a deductible that they cannot afford

Saving $20 a month isn’t worth it if you can’t pay a $2,000 deductible after a crash.

Assuming liability policies include deductibles

Liability policies never include deductibles because they don’t pay to fix your car.

Not understanding the difference between comprehensive and collision

Some drivers don’t realize windshields fall under comprehensive, not collision.

Ignoring lender requirements

Selecting a deductible outside lender guidelines can cause financing delays.

Changing deductibles mid-policy without knowing the restrictions

Some states do not allow mid-term deductible adjustments.

Avoiding these mistakes helps you choose a deductible that actually works for you.

How to Choose the Right Deductible

The best deductible depends on your financial situation, driving habits, and the value of your car.

Choose a lower deductible ($500) if:

• You drive long distances or daily
• Your car is newer or financed
• You want smaller out-of-pocket repair costs
• You want faster repairs
• You cannot afford to pay a large amount after an accident

Choose a higher deductible ($1,000+ ) if:

• You want the lowest possible monthly premiums
• You rarely drive
• Your vehicle is older
• You can afford a high out-of-pocket cost if needed
• You want full coverage without a high premium

Always choose a deductible you could pay today, not one you hope you could pay later.

How to Lower Your Premium Without Raising Your Deductible

If you want to keep a lower deductible but also want to reduce your premium, there are smart ways to do it, including:

• Switching to liability-only if your vehicle is old enough
• Showing prior insurance history
• Maintaining continuous coverage
• Removing optional coverages you no longer need
• Bundling multiple cars
• Improving your driving record
• Increasing your credit score (in allowed states)
• Paying the full six months at once

These strategies help you save without increasing your financial risk.

The Final Word On Loya Insurance Deductibles

Deductibles are one of the most important parts of a Loya Insurance policy. They impact your monthly premium, how much you pay after an accident, and whether your financing terms are satisfied. By understanding how deductibles work and choosing an amount you can comfortably afford, you protect yourself from unexpected financial stress.

Loya Insurance’s deductible options are designed to give drivers control, whether your goal is the lowest possible monthly payment or stronger financial protection with a lower deductible. By choosing wisely, you can make your Loya policy work for your needs, your budget, and your driving habits.