Do I pay my auto deductible when I'm not at fault?

You’ve tucked away your cell phone, put both hands on the wheel, and focused your attention on the road ahead. But despite your best efforts to drive safely, accidents caused by other drivers can still happen.

At American Family Insurance, we understand that dealing with a car accident can be stressful and confusing — especially when it’s not your fault. That’s why we make it a priority to help you navigate the process and get things back to normal as quickly and smoothly as possible.

We’ve highlighted key information here about deductibles and who pays after an accident that isn’t your fault. We’ll also take a look at the deductible recovery process, so you know exactly how your insurance will work to get you reimbursed.

How do car insurance deductibles work?

Let’s break it down. A car insurance deductible is the amount you agree to pay out of pocket when you file a claim. After a covered event, your insurance company steps in to help pay damages, minus the amount of your deductible and up to your policy limit.

Typically, deductibles are associated with collision coverage, which helps protect you in accidents that aren’t your fault. Comprehensive coverage and uninsured or underinsured coverage can also require deductibles.

Do I pay my deductible if I’m not at fault?

The short answer is yes. You can wait for the at-fault driver’s insurance company to pay for your damages, but this process is often slow. The quicker option may be to file a claim with your insurance company so they can help cover the damages and get you back on the road as soon as possible. It might seem unfair to pay for an accident that wasn’t your fault, but that’s where deductible recovery and subrogation come into play.

What is deductible recovery?

Deductible recovery involves a process called subrogation. Subrogation is the insurance world’s way of saying, “We’re working on getting your deductible back because the accident wasn’t your fault.”

The result? One insurer (e.g. American Family) receives money from another insurer (e.g. the at-fault driver’s insurance company) which reimburses the not-at-fault driver’s deductible along with what their insurer paid out for the claim.

Here’s how it works:

1. Your insurance company pays for your damages, minus your deductible. That way, you can get back to your normal routine quickly.
2. The involved insurance companies determine who’s at fault. You may need to provide a statement about the accident, so having a police report, pictures, and other important details would be helpful.
3. Your insurance company recovers your deductible. Once the other driver is confirmed at fault and their insurer accepts full responsibility, your insurer works through subrogation to recover your deductible.

How long does deductible recovery take?

The time required to recover your deductible varies based on the accident’s circumstances. On average, it can take about six months, but if both parties cooperate, you could get your deductible back in one to two weeks.

American Family Insurance is ready to assist you every step of the way — and we’ll work diligently during the deductible recovery process to help you get reimbursed. Have more questions? Connect with an agent to learn more.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.