Guides
Do you pay a deductible if the accident was not your fault?
No deductible if the other driver's insurer pays; you pay it upfront if you use your own collision coverage, then get it back through subrogation.
If the other driver is at fault and you file with their insurance company, you do not pay a deductible; their property damage liability pays for your repairs. If you use your own collision coverage instead, usually because it is faster or the other insurer disputes fault, you pay your deductible upfront and your insurer tries to recover it from the at-fault driver's insurer. If the at-fault driver is uninsured, it depends on your state and your coverage.
The Texas Department of Insurance states the first rule directly: you do not have to pay a deductible for claims against another driver's insurance company. It also notes that if the other driver's insurer will not pay, you can file with your own insurer if you have collision coverage, and your insurer will probably try to collect from the other company.
Your three routes after a not-at-fault crash
| Route | Deductible? | Speed | When it makes sense |
|---|---|---|---|
| Claim against the other driver's insurer | None | Can be slow while they investigate fault | Fault is clear and the other driver is insured |
| Claim on your own collision coverage | Yes, upfront; often reimbursed later | Usually faster | Fault is disputed, the other insurer is slow, or you need the car fixed now |
| Uninsured motorist property damage or a deductible waiver | Depends on state | Varies | The at-fault driver has no insurance |
A claim against the other driver's insurer is a third-party claim; a claim on your own policy is a first-party claim. You can start with the other driver's insurer and switch to your own coverage if they deny or stall, but you cannot collect twice for the same damage. See first-party vs third-party claims.
How you get your deductible back: subrogation
When your insurer pays your claim, it takes over your right to collect from the at-fault driver. That is subrogation. Your insurer pursues the other driver's insurer, often through inter-company arbitration, and when it recovers, it typically reimburses your deductible from the proceeds.
What affects how much you get back:
- Shared fault. In states that use comparative negligence, recovery is reduced by your share of fault. In the few states with contributory negligence, any fault on your part can bar recovery. See comparative vs contributory negligence.
- The other driver's limits. If their property damage limit is too low to cover everything, recovery may be partial.
- Time. Subrogation can take weeks to many months.
A worked example
Say another driver runs a stop sign and hits you (hypothetical figures). Your repair costs $6,000, your collision deductible is $1,000, and the other insurer argues you were partly to blame. You use your collision coverage:
- You pay the body shop $1,000; your insurer pays $5,000.
- Your insurer pursues the other insurer for $6,000.
- Fault is settled at 80 percent the other driver, 20 percent you.
- Your insurer recovers $4,800, 80 percent of the total, and reimburses you 80 percent of your deductible, $800.
If fault had been 100 percent the other driver's, you would have gotten the full $1,000 back. Exactly how a recovery is split between you and your insurer depends on your policy and state law. See subrogation explained: how your insurer recovers your deductible.
When the at-fault driver is uninsured
Here the answer varies most by state.
- California: insurers must offer coverage that pays your collision deductible when an uninsured driver hits you, if there was direct contact, the driver or the license plate is identified, and you report within 10 business days. Without collision coverage, uninsured motorist property damage pays up to the car's actual cash value or $3,500, whichever is less (Cal. Ins. Code § 11580.26).
- South Carolina: every policy includes uninsured motorist property damage of at least $25,000, but the policy may exclude the first $200 of the loss (S.C. Code § 38-77-150).
- Texas: according to the Texas Department of Insurance, you may have to pay a deductible on uninsured/underinsured motorist claims.
Elsewhere, uninsured motorist property damage may or may not be available, and many policies include a collision deductible waiver only when the uninsured driver is identified. You can also sue the uninsured driver for your deductible, though collecting is another matter. See what to do after an accident with an uninsured driver.
Hit-and-run
When the other driver flees, there is no one to subrogate against unless they are later found. Car damage usually goes through your collision coverage with your deductible, and some states' UMPD rules require the other driver to be identified. File a police report promptly. See hit-and-run accidents: how to file a claim.
Michigan's mini-tort
Michigan's no-fault system limits lawsuits over vehicle damage. Instead, you can recover up to $3,000 for damage to your car from the at-fault driver, to the extent it is not covered by insurance, for accidents after July 1, 2020 (MCL 500.3135). That mini-tort claim is the usual way for Michigan drivers to recover a collision deductible from the at-fault driver.
Will a not-at-fault claim raise your rate?
It depends on the state and the insurer, but some states prohibit surcharges for accidents you did not cause. Arizona law, for example, bars insurers from raising your premium because of an accident not caused or significantly contributed to by you, and requires an insurer that raises premiums after an accident to tell you why (A.R.S. § 20-263). Even where a surcharge is barred, the claim is still recorded in your claims history.
Steps to protect your deductible
- Get the other driver's name, insurer and policy number, plus photos and witness contacts. See what information to exchange after an accident.
- File a police report if your state requires it or fault may be disputed.
- Open a claim with the other driver's insurer and ask for a decision on liability.
- If they deny, delay or you need the car, file under your collision coverage and tell your insurer you want subrogation pursued.
- Keep the deductible receipt and ask your insurer to update you on recovery.
- If your insurer won't pursue it, you can sue the at-fault driver for the deductible in small claims court. See small claims court after a car accident.
Key takeaways
- Claims paid by the at-fault driver's insurer have no deductible.
- Using your own collision coverage means paying the deductible upfront and waiting for subrogation to recover it.
- Partial fault reduces how much of your deductible comes back.
- Uninsured-driver crashes are handled differently by state; California and South Carolina are two examples.
- Michigan drivers recover deductibles through the mini-tort, up to $3,000.