Is paying someone's deductible illegal?

Asked by: Estrella Schimmel  |  Last update: February 6, 2026
Score: 4.8/5 (72 votes)

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.

Is it illegal to pay someone's deductible?

The contractor will “absorb”, “waive”, or offer to pay the deductible. The problem is that it's not legal.

Is it illegal for a contractor to pay your 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.

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.

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.

Is it illegal for my roofer to waive my deductible? | #Insurancedeductible

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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.

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.

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.

Will my insurance go up if I make a claim on my roof?

While it is possible for your rates to increase when you make a claim, most homeowners make the most of the situation by filing claims after their home suffers storm damage and requires serious roof repairs or replacement. At the end of the day, it really depends on your policy and situation.

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.

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.

Can you sue a contractor for taking your money?

If your claim is minor, you can file a suit through small claims court. Each state has a limit, some at $3,000, $8,000, or up to $25,000. You can file a small claims case yourself or have an attorney help you.

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.

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

Insurance companies collect deductibles every time they settle a claim, so they don't care who was at fault. You would not be at fault if your car was stolen from a secure facility, but you would still pay a deductible if you filed an insurance claim.

Who do I pay my deductible to for a new roof?

If the roofer states that the cost of repairs is $8,000, and your home insurance deductible is $1,000, you will cover the difference, but the insurance company will issue a check for $7,000. Of course, the homeowner still has to pay the $1,000 deductible.

Are illegal payments deductible?

Similarly, no deduction is allowed for any payment made to a person who is not an officer or employee of a government if the payment constitutes an illegal bribe, an illegal kickback, or other illegal payment under any law of the United States, or under any generally enforced law of a state, that subjects the payor to ...

Will my insurance go up if I'm not at fault?

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

Will insurance cover a 15 year old roof?

To answer the question concisely: Yes, insurance will cover a 15-year-old roof in many cases.

Will my insurance go up if I file a claim for hail damage?

Not only do you have to pay for repairs, but there's also a good chance that your insurance company will raise your premiums after paying out on the claim. If you have a hail damage claim on your homeowner's insurance, it will likely raise your premium.

Do you have to pay a deductible if someone hits your 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.

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.

What does subrogation mean?

When you file a claim, your insurer can try to recover costs from the person responsible for your injury or property damage. This is known as subrogation. For example: Your insurance company pays your doctor for your treatment following an auto accident that someone else caused.

Can you get out of paying your deductible?

Some insurers even offer a disappearing deductible program. It's what it sounds like. If you go a set amount of time without a claim or violation your deductible amount will decrease or be waived.

In what circumstances would a property insurance claim be rejected?

Property insurance is designed to cover damages caused by accidents or unexpected events. However, if the damage is a result of negligence or intentional acts by the homeowner, the insurance company may reject the claim.

Is a $2500 deductible good home insurance?

Is $2,500 a good home insurance deductible? As long as you're comfortably able to pay it in the event of a claim and don't mind footing the bill for smaller losses (say, a broken pipe or stolen laptop), $2,500 is a fine deductible to choose.