Deductible is the money that comes out of policyholders’ pocket before the auto insurance company pays for the rest of a claim. Usually Collision and Comprehensive Coverage have them but not Liability. Do you still pay them if the accident is not your fault? This is a valid concern and the answer depends on who compensate the losses. Let’s have a look at several scenarios and see the outcomes.
To Whom Do You Submit the Claim?
So, you had an accident and you think it is someone else’s fault? If you do not want to pay any deductibles at any stage you must apply directly to the third party insurer. They would look at and settle it if they agree that it was their policyholder’s mistake and there is sufficient liability car insurance coverage for all of your damages. Motorists should always try to document accidents as best as they can and take down the names of witnesses if there are any. You shouldn’t ignore this task because the other driver accepted the responsibility. They can change statements when it comes to reporting the incident.
The problem is that dealing with third party carriers is not always easy and they may drag their feet as long as it takes. Sometimes, the responsible driver may be slow to reply as well. They wouldn’t be keen to upset an existing policyholder so that they can spend money. So, there is no reason for them to rush it through. They will always side with own customer. Usually, it is clear from early communications if the they will accept the fault and like you get compensated as quickly as possible or not. When you realize that things are not going to go smoothly you have a decision to make because you need to get it fixed and put it back on the road as quickly as possible.
Submitting the Claim to Your Own Insurer
Many people don’t want to go through this process and most importantly they don’t want to go alone. Their carrier can provide valuable help and assistance in dealing with third parties. They would know the limits and operations in place to speed things up. This would mean that policyholders would get own provider involved by submitting the claim to them. The repairs can start and they can get on with their lives. In that case, they will need to pay it to the repair shop or they settle for a totaled car minus the deductible.
Next, the carrier would seek compensation from the third parties. This process is called subrogation in vehicle insurance. They can reimburse the deductible paid if they are successful and get back the full amount of losses. Furthermore, the claim would go down as no fault and shouldn’t affect the renewal premium. The only thing is that it could take a while before it is finalized. At least they would deal with the repairs in a timely manner and you can put the car back on the road.
So, how you want it handled and where you submit it determines if you will be out of pocket and how it affects renewals.