Liability insurance will only

pay for the 3nd party (the other party, not you) without deductible only when you ARE legally libale. In your case, you are obviously liable for the damage to UPS. So your liability insurance WILL pay for the damage to the 3nd party- here the UPS. Besides there is no deductible in liability coverage. As to your future insurance premium, you need to consider which way is better to save money, pay 500 by yourself without any effect to your premium or ask insurance company to pay for 500 and you take the risk of increased premium later. Depends on you.