When you purchased your car insurance policy, the insurer at one point prompted you to choose your preferred deductible. Even though most people put thought into how affordable a deductible is, many do not understand how all this plays out if they are involved in a car accident.
Simply put, a deductible is the agreed amount of money that a policyholder is required to pay out of pocket before the insurance provider will pay for the rest of the damages.
So, how do car insurance deductibles work after an accident, and when do you pay them?
How Auto Insurance Deductibles Work After an Accident
When an accident occurs, your car insurance policy requires you to take responsibility for some of the damage. This is your deductible, and it is usually a fixed amount. In the event of serious vehicle damage, the insurance company will write you a check that’s less the amount of your deductible.
For instance, if your deductible is $500 and your car repair costs amount to $2,000, your insurance company will pay $1,500 while you are expected to take care of the rest.
These deductibles automatically apply when you file a claim with your car insurance provider after car damage from a collision or other comprehensive causes. You’ll also need to pay the deductibles if the accident involved another driver but no one is deemed at fault.
In the case of a totaled car, the insurance company will write you a check that’s equal to its price but less your deductible.
What if I Was Not At Fault for the Accident?
If you suffered injuries and vehicle damage due to another person’s fault, a car accident lawyer can help you seek financial remedies so that you don’t have out-of-pocket expenses like deductibles.
However, sometimes you may need to file a claim with your insurance first, depending on your auto insurance policy. In this case, you may be required to pay the deductible up front but your insurer can later recover them through subrogation.
Reach Out to a Car Accident Lawyer
A car accident can easily spiral into bigger problems, such as the at-fault driver not having coverage or your insurance provider denying responsibility even after you’ve paid your dues in deductibles.
When you are involved in a crash, it’s better to consult with a car accident lawyer to understand your state laws and other legal guidelines that might impact your payout.
Speak with an experienced attorney from Lopez & Humphries, PA, on-call at (863) 774-3573, or send a brief message through the contact form below and we’ll get back to you.