Is it illegal for a contractor to pay a deductible?

Asked by: Hollis Daniel Sr.  |  Last update: January 31, 2025
Score: 4.9/5 (42 votes)

Deductibles. It is illegal for a contractor to pay, waive, or discount your insurance deductible. It is insurance fraud if homeowners don't pay their deductible. Some contractors offer waived or discounted deductibles as a selling point to their customers.

Why do I have to pay a deductible if it's not my fault?

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.

How do I get out of paying a deductible?

You can avoid paying your car insurance deductible for vehicle repairs by not filing a claim at all or by getting the mechanic to waive the deductible, which is possible but highly unlikely. In some cases, your insurer may also waive your comprehensive deductible for glass damage specifically.

Is it illegal for a roofer to pay your deductible?

You'll hear some roofing companies offering to pay deductibles, but this is illegal. Not only is a roofing company paying your deductible illegal, but it is outright committing fraud.

Who is responsible for paying the deductible?

Simply put, a deductible is the amount of money that the insured person must pay before their insurance policy starts paying for covered expenses.

What"s Wrong With Hiring A Contractor Who Will Pay My Deductible?

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Is it illegal to not pay your deductible?

The insurance carrier outlines its responsibilities in the benefits, limits, and exclusion sections. But homeowners also have responsibilities as well. If you do not pay your deductible you are committing a crime. Technically, this is a form of insurance fraud.

How to get deductible waived?

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.

Is it illegal for a contractor to pay my deductible?

It is illegal for a contractor to pay, waive, or discount your insurance deductible. It is insurance fraud if homeowners don't pay their deductible. Some contractors offer waived or discounted deductibles as a selling point to their customers.

What is the deductible law?

Deductible in tax law (referred to as a tax deductible) means an item or expense that can reduce the taxes a person owes in a given year. A deductible item is subtracted from the total taxable income which can substantially reduce taxes owed by an individual or corporation.

Can I sue my roofing company?

2. Negligence: If the roofing company's negligence leads to property damage or personal injury, you may be entitled to compensation. This could include situations where the company fails to follow safety regulations or installs the roof improperly.

How to not pay deductible for roof?

No matter what a roofer tells you you must pay your deductible. There is no way around it and insurance will consider it insurance fraud if they do. Many homeowners try to find a way around this but there is no way around it. You can also verify this directly with your insurance provider or an attorney.

What happens if I can't afford to pay my deductible?

If you can't pay your auto or home insurance deductible, you won't be able to file a claim and get your repairs covered.

Is it okay for a contractor to waive my deductible?

No. A deductible is part of your home insurance policy. It's illegal for contractors to waive your deductible or help you avoid paying it.

How to avoid paying deductible?

How Can I Avoid Paying a Car Insurance Deductible?
  1. Choose not to file a claim until you have the money.
  2. Check your policy, as you may not have to pay up front.
  3. Work out a deal with your mechanic.
  4. Get a loan.

Do I have to pay deductible if I was not at fault with Allstate?

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.

Do you pay your deductible before or after repairs?

Deductibles for car insurance require you to pay the deductible amount every time you file a claim. Once you pay the car deductible amount, your insurer will cover the remaining cost to repair or replace your vehicle.

Do you have to pay your deductible if you're not at fault?

It depends on your insurance policy. Some insurance policies require you to pay your deductible even if you are not at fault, while others do not. Reviewing your policy or speaking with your insurance agent to understand your coverage is important.

Is it illegal to cover deductibles?

You'll hear it phrased several ways. The contractor will “absorb”, “waive”, or offer to pay the deductible. The problem is that it's not legal.

Is deductible mandatory?

Depending on your policy, and the types of coverages you have, a deductible may be required. With an auto insurance policy, coverages like comprehensive and collision may require a deductible before said coverages apply in the event of a covered incident.

What is deductible for an independent contractor?

Contractors and other self-employed workers can deduct home office expenses, advertising expenses, accounting fees, phone bills, equipment depreciation, travel and car expenses, healthcare and retirement contributions, and more from their taxable income.

Can deductible be waived?

In some cases, the deductible may be waived because the service is already free or at a low cost under your plan. This is often the case with preventive services. For example, an annual wellness visit may only cost you $20, but that $20 might not count toward your deductible.

Can you reimburse a contractor for expenses?

Have you heard about California's new Assembly Bill 5? At the beginning of 2020, the state reclassified many independent contractors as employees and required that many companies provide reimbursement for things like vehicle mileage.

Can you have a $0 deductible?

A no-deductible health plan, also called a zero-deductible policy, is a health insurance plan that doesn't require participants to meet a minimum out-of-pocket amount before their insurance company begins paying their medical expenses.

Is it better to have a $500 deductible or $1000?

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.

Can a deductible be paid in payments?

With regard to healthcare deductibles, always ask if it's possible to negotiate a payment plan. The healthcare provider cannot legally waive the deductible but they can allow you to pay it over time.