Do I pay my deductible if I’m not at fault?
The short answer? Yes. You can choose to wait until the at-fault driver’s insurance company connects with you and pays for your damages, but that method is rarely swift. There is another option if you want to get the process rolling so you’re back on the road quicker. That’s to file a claim with your insurance company, pay your deductible and have them cover the remaining costs for damages
But it doesn’t seem fair to have to pay for an accident that wasn’t your fault, right? That’s where deductible recovery and subrogation comes into play.
What is deductible recovery?
With deductible recovery, American Family will work through a process called subrogation. Subrogation is the insurance world’s way of saying, “We’re working on getting your deductible back because the accident wasn’t your fault.”
Basically, subrogation is when one insurer (e.g. American Family) receives money from another insurer (e.g. the at-fault driver’s insurance company) so that the not-at-fault driver gets their deductible back.
Here’s how subrogation works in car insurance:
Your insurance company will pay for your damages, minus your deductible. Don’t worry — if the claim is settled and it’s determined you weren’t at fault for the accident, you’ll get your deductible back.
The involved insurance companies determine who’s at fault. Sure, you know the answer to this, but it’s all part of the process. You might be asked for a statement about the accident, so having the police report, pictures and/or other important details will be helpful.
Your insurance company recovers your deductible. After determining the other driver was indeed at fault, your insurance company will work through the subrogation process to recover your deductible. You may need to submit proof that you paid your deductible, which could be a body shop invoice or credit card statement.
How long does deductible recovery/subrogation take?
The deductible recovery process time depends on the circ*mstances of your accident. After all, each claim is unique. But on average, it can take about six months to recover your deductible. If both sides are cooperative and provide the necessary information, it’ll make everything much smoother. You could get your deductible money back in as quickly as one to two weeks.
No matter the situation, American Family is your advocate. We’re prepared to help you through the process every step of the way — and we’ll work diligently to do whatever we can during the deductible recovery process to help you get reimbursed. Have more questions? Connect with an agent to learn more.
This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsem*nts, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.
