The accident wasn’t my fault. Shouldn’t the other driver pay my deductible?
You do not need to be a financial or accounting expert to understand the all the term of your insurance because there is an agent to help you or you can search about some specific terms through internet. Buy you should know about the some basic rules and guidelines about your insurance. Deductible is one of the terms which is very common and used mostly in term of insurance. So what does deductible means? In car insurance, the deductible is the amount you have to pay from your own pocket to cover the damage of your car before your insurance company cover the rest of it.
The amount of deductible is set during the contract and set by the mutual agreement of both parties. But in some case the amount for deductible is already set and fixed for everyone.
Still confused what does deductible? Let’s take an example of deductible. Suppose you have agree with $600 deductible and you are in situation of accident which cause $2000 famages then you will pay the $600 of the car damage while the rest of damage cost will be paid by insurance company which is $1400.
But what about the deductible if the car accident is not your fault? Will the insurance company of other driver will pay your deductible? Or you have to bear these expenses too? Generally if car accident if not your fault then why should you bear the expenses? Why should you spend money on the fault of other? Let’s back to the question:
The accident wasn’t your fault. Shouldn’t the other driver pay your deductible?
If accident was not your fault then your insurance company will go to the other company through legal way to claim the full damage. You have to pay deductible from your own pocket until your insurance company succeeds. If they are collection 100% damage then they will pay the complete mount of deductible. If they only collect 80% then they will pay you 80% of total deductible.
It is a long process and can take number of weeks or even month and you are not going to wait to repair your car for that tie of period. So, for initially you will pay your deductible to repaid your car while you will wait for the court decision regarding to the car fault and how much your insurance company get from the second party of insurance company. If they succeed then they will cover the amount of deductible you have paid before. How much they pay you? It depends, how much they claim through court from third party.