Your deductible is owed regardless of fault. It's purpose is to deter insureds from filing a claim for anything and everything under the sun and doesn't take liability/negligence into consideration.
You can avoid paying your collision deductible by choosing not to file a claim until you have the money or checking your policy for options that don't require upfront payment.
It may seem unfair, but accidents that aren't your fault may still increase your rate depending on your state and insurer. Not-at-fault accidents can indicate a higher likelihood of future accidents.
Always File a Claim, Regardless of Who Was At-Fault
One of the primary questions we receive from clients who have been in an accident is whether they should report the accident to their own auto insurance carrier, particularly when the accident was not their fault. And the answer to that question is: always.
Yes, if you have to pay your deductible and you were not at fault, you may be able to get it back from the at-fault driver's insurance company. This is called subrogation. Your insurance company will pursue the at-fault driver's insurance company to recover the money paid for the damages, including your deductible.
Start the claims process
Regardless of who's at fault, it's a good idea to inform your car insurance company that an accident occurred.
California law prevents insurance companies from increasing your rates for accidents where you are not considered principally at fault.
Small Accident Forgiveness: Starting with your first policy term, we won't raise your rate for your first claim less than $500.
Report the Car Accident to Your Insurance Company
If you had no fault at all in the car accident, the other driver's insurance company should be liable for your damages. You should be compensated for all of the costs of the accident.
Fault determination: Most insurers require you to be not at fault for the accident. Some auto companies may require you to be 100 percent fault-free to have the deductible waived, while others may waive a percent of your deductible based on your percentage of fault.
Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.
Let's say your vehicle is damaged due to another driver's negligence. Once GEICO settles your claim, we'll likely seek to recover your deductible, as well as the amount we paid, from the negligent party or that party's insurance company.
If a driver hits you, your collision coverage will still cover the damage to your vehicle, but you won't have to pay your deductible. In some states, the driver must also be uninsured for a CDW to apply.
Your collision coverage helps pay to repair damage to your vehicle, regardless of who's at fault. Keep in mind you'll have to pay your deductible.
If your deductible has been satisfied, your health insurance will pay for the service, minus any copayment or coinsurance you are required to cover. If the deductible has not yet been satisfied, you are responsible to pay for the services received—this is your contribution toward the deductible.
In California, it will stay on your driving record for 10 years. Please note that a driving record is separate from a criminal record.
If you damage someone else's vehicle during a significant collision, and you're at fault, you should always file a claim.
Each insurer handles accident forgiveness differently: With Progressive, a small claim (under $500) won't raise your rates in most states. If you remain accident-free for five years, even a larger accident can be forgiven.
But how long does a car accident stay on your record in California? Typically, accident records are kept by the DMV and insurance companies for three years before being deleted.
Does insurance go up if its not your fault? Yes, insurance rates may go up even if the accident is not your fault, depending on the circumstances of the accident, the types of coverage you have, and your claims history. However, the increase may not be as significant as it would for an at-fault accident.
Accident forgiveness may be especially worth considering if your local area has particularly high accident rates. You can also request a quote from Progressive and/or a few other providers to decide whether the additional cost of accident forgiveness coverage is appealing to you.
If You're Not at Fault
You can wait for the at-fault driver's insurance to pay directly for the damage to your vehicle. While this option means you won't need to pay a deductible, it could take time for the other insurer to approve the claim, assess the damage, and arrange repairs.
According to Forbes, the average settlements in terms of personal injury claims relating to car accidents are $20,000 to $25,000. However, your personal injury claim could be worth much more than that depending upon the circumstances of your accident and injuries.
Yes, it is generally advisable to notify your insurance company even if the accident wasn't your fault. Most insurance policies require policyholders to promptly report any accidents or incidents, regardless of fault.