This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Is A Deductible Due For Every Accident Claim?





Question: Is a deductible due when making any type of car insurance claim after a crash?

Answer: A deductible isn't associated with every type of car insurance coverage, so it will depend upon the kind of claim that is being made.  (See “What is a deductible?”)

Liability coverages are deductible-free.

For example, if someone hits you and you're making a claim against the driver's liability coverages, then you won't have a deductible due.  If the other driver's auto insurance company finds that their policyholder was fully at fault, then their liability coverages should pay for damages to your car (property damage liability) and injuries (bodily injury liability), up to the person's maximum limits.

The same holds true if you hit someone and the other driver makes a claim against your liability coverages. There wouldn't be due a deductible due by you or the party making the claim. 

But "full coverage" is different.

If you use your physical damage coverages of collision and comprehensive to make a claim for damages to your vehicle, then you'll normally need to pay out a deductible -- whether you're at fault or not.  It doesn't matter if you lost control and hit a tree or a deer ran into your vehicle, a deductible would be due. (See “What if I can't pay my deductible?”)

If you're not at fault in an accident and don't want to pay a deductible, then you'll need to go through the at-fault party's property damage liability coverage to make your claim.  If you go through your own collision and make a claim, the deductible will be due and though your insurer may subrogate with the other party, there is no guarantee that they will be able to recoup your deductible amount.

There are a few exceptions (that vary by state and insurer) regarding a deductible being due after a comprehensive or collision claim.  For example, in some states your comprehensive deductible is waived for windshield claims.  Also, sometimes if you're in an accident with another driver who is insured by the same insurer as you and you chose to make a collision claim, your deductible may be waived.

Other parts of your insurance also may come with a deductible, such as personal injury protection (PIP) if you live in a no-fault state.  And, in some states, uninsured motorist bodily injury and uninsured motorist property damage come with deductibles.  If you're making a claim against your own car insurance policy and are unsure if you have a deductible amount, review your policy and contact your agent if you need clarification.

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs