Do I Pay My Deductible If I'm Not at Fault?

The Two Ways to File After a Not-At-Fault Accident

When you're hit by another driver and you're not at fault, you have two claim options:

Option 1: File through your own insurance (first-party claim)

• You pay your deductible upfront (typically $500-$1,000)
• Your insurer fixes your car immediately
• Your insurer then seeks reimbursement from the at-fault driver's insurance (subrogation)
• If successful, your insurer refunds your deductible (usually 30-90 days later)
• Pros: Faster repairs, your insurer handles everything
• Cons: You pay upfront and wait for reimbursement

Option 2: File directly with the at-fault driver's insurance (third-party claim)

• You don't pay your deductible
• The at-fault driver's liability insurance pays 100% of your repairs
• You deal with the other insurance company directly
• Pros: No out-of-pocket cost, no deductible
• Cons: Slower process, other insurer may dispute fault, you handle negotiations

Most drivers choose Option 1 for speed and convenience, then get reimbursed later.

What Is Subrogation?

Subrogation is the process where your insurance company recovers money from the at-fault party's insurer after paying your claim.

Here's how it works:

• 1. You file a claim with your insurance and pay your deductible
• 2. Your insurer pays for your repairs (minus your deductible)
• 3. Your insurer investigates and confirms the other driver was at fault
• 4. Your insurer bills the at-fault driver's insurance company for the full amount (including your deductible)
• 5. The other insurer pays (if they accept fault)
• 6. You get reimbursed for your deductible

Timeline: Subrogation typically takes 30-90 days, sometimes longer if fault is disputed or the other insurer is slow to respond.

Success rate: If fault is clear (police report, witness statements, dashcam footage), subrogation is usually successful. If fault is disputed or the at-fault driver is uninsured, you may not get reimbursed.

When You'll Definitely Pay Your Deductible (Initially)

You pay your deductible upfront in these scenarios:

1. Filing with your own insurance for collision: Even if you're 0% at fault, your collision coverage requires a deductible payment.

2. Comprehensive claims (non-collision): Hitting a deer, hail damage, theft—these always require your comprehensive deductible, even though they're not your fault.

3. Uninsured/underinsured motorist property damage (UMPD): In some states, UMPD claims involve a deductible. Check your policy.

4. Unclear or disputed fault: If fault isn't 100% clear, your insurer will charge the deductible while investigating.

5. Hit-and-run (driver not identified): You'll use your collision coverage and pay the deductible. If the driver is later identified and has insurance, subrogation may refund you.

When You Won't Pay Your Deductible

1. Third-party claim only: If you file directly with the at-fault driver's insurance and never involve your own, you pay nothing—no deductible, no premium impact.

2. At-fault driver's insurer accepts 100% liability: If the other insurer immediately accepts full fault, you can skip your insurer entirely and file a third-party claim.

3. Your state has deductible waiver laws: Some states require insurers to waive your deductible in not-at-fault accidents if certain conditions are met (e.g., police report confirms other driver at fault).

4. Your policy has "disappearing deductible" or deductible waiver: Some insurers offer endorsements that reduce or eliminate your deductible for not-at-fault claims. Check your policy.

5. Successful subrogation before repairs: Rarely, if your insurer recovers money from the other party before processing your claim, you might avoid paying the deductible.

State-Specific Deductible Waiver Laws

Some states require insurers to waive deductibles in not-at-fault scenarios:

States with deductible waiver requirements:

• California: If you're not at fault and the other driver's insurer accepts liability, your insurer must waive your deductible
• New York: Similar waiver requirements for clear not-at-fault accidents
• Other states: Check your state's insurance department website or your policy declarations

Requirements typically include:

• Police report identifying the at-fault driver
• Other driver has insurance
• Fault is clear and undisputed
• You report the claim promptly

Even in states without waiver laws, many insurers voluntarily waive deductibles for clear not-at-fault claims to improve customer satisfaction.

How Long Does Deductible Reimbursement Take?

Typical timeline:

• 30-60 days: Clear-cut not-at-fault accidents with cooperative insurers
• 60-90 days: More complex investigations or slower responding insurers
• 3-6 months: Disputed fault, incomplete evidence, or uncooperative parties
• Never: If the other driver is uninsured, underinsured, or fault can't be proven

How you'll receive reimbursement:

• Check mailed to you
• Direct deposit (if you've set it up with your insurer)
• Credit applied to your policy (reducing future premiums)

Track your subrogation: Call your claims adjuster every 2-3 weeks for updates. Ask for the subrogation department contact if it's taking longer than 60 days.

What If Fault Is Disputed?

If the other driver or their insurer disputes fault:

Your deductible situation:

• You'll pay your deductible initially
• Your insurer will investigate and may assign partial fault percentages
• If you're found 50% at fault, you may only receive 50% of your deductible back
• If you're found 100% at fault (initial assessment was wrong), you won't be reimbursed

Evidence that helps:

• Police report assigning fault
• Witness statements
• Dashcam or security camera footage
• Photos of accident scene, damage, and skid marks
• Traffic violation citations issued to the other driver

Comparative vs. contributory negligence: Your state's fault laws affect whether you can recover anything if you're partially at fault. In comparative negligence states, you can recover even if you're 30% at fault (reduced by your fault percentage). In contributory negligence states, any fault disqualifies you from recovery.

Third-Party Claims: Pros and Cons

Advantages of filing directly with the at-fault driver's insurance:

• No deductible: You pay nothing out-of-pocket
• No premium impact: Your insurance isn't involved, so no rate increase
• Full repair costs covered: No out-of-pocket expenses at all

Disadvantages:

• Slower process: The other insurer has no incentive to rush
• Fault disputes: They may lowball offers or dispute liability
• You handle everything: No claims adjuster working for you
• Delays getting your car fixed: You may be without transportation longer
• Rental car delays: Rental reimbursement may not start immediately

When third-party claims work well:

• Fault is undisputed (rear-end collision, other driver ran red light)
• Other driver's insurer accepts liability immediately
• You can afford to wait for payment
• You have alternative transportation

For more on how liability insurance works in these scenarios, see car insurance deductibles explained.

What If the Other Driver Is Uninsured?

If the at-fault driver has no insurance:

You have three options:

• 1. File with your collision coverage: Pay your deductible, get your car fixed. No subrogation reimbursement possible.
• 2. Use uninsured motorist property damage (UMPD) if you have it: May have a lower or no deductible, depending on your state and policy.
• 3. Sue the at-fault driver personally: Small claims court for amounts under $5,000-$10,000 (varies by state). Recovery depends on their assets.

Why UMPD coverage matters: This coverage exists precisely for this scenario—protecting you when the at-fault driver can't pay. Some states require it; others make it optional. If you live in an area with high uninsured driver rates, it's valuable protection.

Should You File Through Your Insurance or Theirs?

File through your own insurance if:

• You need your car fixed immediately
• Fault is slightly unclear and might require investigation
• You want your insurer to handle all negotiations
• You have a low deductible ($250-$500) you can afford
• You trust you'll be reimbursed via subrogation

File directly with the other driver's insurance if:

• Fault is 100% clear and undisputed
• The other driver's insurer accepts liability immediately
• You want to avoid any premium impact
• You don't want to pay a deductible even temporarily
• You can wait 1-2 weeks longer for repairs to begin

Frequently Asked Questions