Is it illegal to pay someone's deductible?

Asked by: Jonas Stroman  |  Last update: February 24, 2026
Score: 4.1/5 (7 votes)

Not only is it illegal, but it's also insurance fraud. However, even this doesn't stop some homeowners from jumping at the opportunity when a roofing company offers to pay their deductible. Maybe they think they're getting a great deal or avoid paying their high deductible.

Can the person who hit me pay my deductible?

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.

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.

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.

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 Much Car Insurance Do I Actually Need?

18 related questions found

Do I have to pay a deductible if someone hits my parked car?

With both collision and uninsured motorist property damage coverage, you may be responsible for paying a deductible before your insurance provider will help pay for the damage. Your coverage will also be subject to your policy limits, which is the maximum amount your insurance will pay for a covered claim.

Should I file an insurance claim if I am not at fault?

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.

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.

How to avoid paying a 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.

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.

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 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.

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.

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.

Is it illegal to pay out-of-pocket for a car accident?

Strictly speaking, paying out of your pocket for a car accident isn't illegal, but accepting the offer may have unwanted consequences.

Do I have to pay my deductible if the accident wasn't my fault progressive?

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.

Why do I have to pay my deductible if someone hits me?

You must pay your deductible every time you seek compensation from your car insurance company, regardless of how the accident happened. However, if you decide to sue the liable party for damages, your car accident lawyer could include the deductible as part of the settlement you seek from their insurance company.

Is it illegal for a body shop to pay your deductible?

Any savings from the repair work clearly belongs to the insurance company. By keeping the deductible you are violating your insurance policy and could be committing insurance fraud. Penalties for insurance fraud are very severe in California.

What are subrogation rights?

“Subrogation” refers to the act of one person or party standing in the place of another person or party. It is a legal right held by most insurance carriers to pursue a third party that caused an insurance loss in order to recover the amount the insurance carrier paid the insured to cover the loss.

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.

How to get a roof replaced without paying the deductible?

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.

Is waiving deductibles illegal?

Providers sometimes waive patients' cost-sharing amounts (e.g., copays or deductibles) as an accommodation to the patient, professional courtesy, employee benefit, and/or a marketing ploy; however, doing so may violate fraud and abuse laws and/or payor contracts.

What happens if no one is at fault in an accident?

But what will happen if no one is at fault for your car accident? You can always file a no-fault car insurance claim. The insurance provider will compensate the policyholder and its passengers for the cost of minor injuries and loss of income regardless of who caused the accident.

Do you get your deductible back if you're not at fault?

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.

Will my insurance go up if I file a claim that's not my fault?

California law prevents insurance companies from increasing your rates for accidents where you are not considered principally at fault.