If someone hits me, do I still have to pay my deductible?

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You typically do not have to pay a car insurance deductible if someone else hits you, but it depends on how you file your claim.

How Filing Works

  • Filing through the other driver's insurance: If you file a claim directly with the at-fault driver's Liberty Mutual liability insurance and they accept full blame, you pay zero deductible. However, this process can take longer while they investigate the crash.
  • Filing through your own insurance: If you want your car fixed faster, you can use your own collision coverage. You will likely have to pay your deductible upfront to the repair shop. Your insurance company will then try to get the money back from the other driver through a process called subrogation. If they succeed, they will reimburse your deductible.

Do I pay a deductible if someone hits me?

You usually do not have to pay a deductible if someone hits you and they are found at fault.

However, whether you pay depends on how you file your claim:

Filing Through the At-Fault Driver’s Insurance

  • No deductible: If you file a claim directly with the other driver's liability insurance and they accept responsibility, you pay $0 out of pocket.
  • The downside: This process can take longer while the insurance companies investigate the crash and decide on liability.

Filing Through Your Own Insurance (Collision Coverage)

  • Pay upfront: If you use your own collision insurance to fix your car faster, you will likely have to pay your deductible to the repair shop when you pick up your car.
  • Get reimbursed later: Your insurance company will try to get the money back from the at-fault driver's insurance through a process called subrogation. If they succeed, they will refund your deductible, but this can take several weeks or months.

Do I pay the deductible if I am not at fault?

You do not have to pay your deductible if you file a claim directly with the at-fault driver's insurance company, but you may have to pay it upfront if you use your own collision coverage.

Filing Options and Deductibles

  • Through the other driver's insurance: If you file a third-party claim with the at-fault driver's insurer and they accept full liability, you owe zero deductible. However, this process can take longer while they investigate the crash.
  • Through your own insurance: If you use your own American Family Insurance collision coverage to get your car fixed faster, you must pay the deductible upfront.

Getting Your Money Back

  • Subrogation: If you pay your own insurer first, your company will try to get the money back from the at-fault driver through a process called State Farm subrogation.
  • Refund: If your insurer successfully recovers the full cost from the other party, they will refund your deductible.
  • Timeline: This refund is not instant and typically takes anywhere from a few weeks to several months.

How do I avoid paying my deductible?

You can legally avoid paying an insurance deductible by utilizing specific claim pathways or coverage types, depending on whether you are dealing with auto or health insurance.

Be extremely cautious of any third-party offers to "waive" or hide your deductible, as this can easily cross into insurance fraud. Below are the legitimate ways to avoid or minimize paying a deductible.

🚗 For Auto Insurance

  • File through the at-fault driver's insurance: If someone else hit you and they are entirely at fault, you can file a third-party claim directly with their insurance company. Because you are utilizing their liability coverage, you will not have to pay a deductible. (Note: This process can sometimes take longer than going through your own insurer).
  • Collision Deductible Waiver (CDW): If you are hit by an uninsured driver and have this specific waiver attached to your policy, your insurance company will waive your collision deductible entirely.
  • Glass-only modifications: Many insurers offer a specific $0 glass deductible add-on. If your only damage is a cracked windshield, this ensures you pay nothing out of pocket for the replacement.
  • Deductible rewards: Some companies offer "vanishing deductibles" that reduce your out-of-pocket amount by a set dollar figure for every year you maintain a clean driving record.

🏥 For Health Insurance

  • Utilize preventive care services: Under the Affordable Care Act, routine preventive services—such as annual checkups, routine screenings, and standard vaccinations—must be covered 100% by in-network providers without requiring you to meet a deductible.
  • Stay strictly in-network: While this doesn't bypass a deductible, insurance companies negotiate deeply discounted rates with network providers. You pay the significantly lower contracted rate directly to the doctor rather than the full retail price before your deductible kicks in.
  • Seek care at Community Health Centers: Federally Qualified Health Centers (FQHCs) and community clinics often provide medical care on a sliding scale based on your income, or they may accept whatever your insurance pays as payment in full without billing you for the remaining deductible balance.

⚠️ A Warning About "Deductible Help" scams

If an auto repair shop or a home roofing contractor offers to "absorb," "waive," or "hide" your deductible by inflating the repair estimate sent to your insurance company, do not accept. Submitting an artificially inflated bill to an insurance provider constitutes insurance fraud, which is a serious crime.

If you are currently struggling to pay an active deductible, the safest legal route is to ask the repair facility or medical provider for an interest-free installment plan to break the lump sum into manageable payments.

How long do I have to pay my deductible after an accident?

You typically pay your car insurance deductible directly to the repair shop when the repairs are finished and before you pick up your car.

When and How You Pay

  • Repair Shop Payment: The insurance company pays its portion of the bill directly to the shop, and you pay your deductible amount as the remaining balance to release the vehicle.
  • Deducted from Payout: If your car is a total loss or you are taking a cash payout instead of direct repair, the insurer will subtract your deductible amount directly from their check to you.
  • Not-at-Fault Claims: If another driver is at fault, you may still need to pay your deductible upfront to get your car fixed quickly through your own Progressive policy, but your insurer will try to recover it later through a process called subrogation.

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

9 related questions found

Is $1000 a good collision deductible?

A $1,000 collision deductible is a good and popular choice for most drivers because it lowers your monthly premium while keeping your out-of-pocket risk manageable.

When a $1,000 Deductible Works Best

  • You have savings: You can easily pay $1,000 out of pocket on short notice without creating financial stress.
  • You want lower bills: Raising your deductible from $500 to $1,000 typically cuts your collision premium by 10% to 28%.
  • You avoid small claims: You prefer to pay out of pocket for minor scratches or small dents rather than filing a claim that could raise your rates.

When to Choose a Different Amount

  • Choose $500 if: Coming up with $1,000 quickly would cause a major hardship. The higher monthly cost acts as peace of mind.
  • Reconsider collision coverage entirely if: Your car is worth less than $3,000 or close to the $1,000 deductible amount, as the insurance payout won't be worth the premium cost.
  • Choose $2,500 if: You have a large emergency fund and want the absolute lowest monthly rate.

You can learn more about how deductibles affect your rates from Kelley Blue Book.

Is it worth reporting a scratch to insurance?

It is generally not worth reporting a minor car scratch to your insurance if the repair cost is lower than or close to your deductible.

When to Skip Insurance

  • Cost vs. Deductible: If a scratch costs $500 to fix and your deductible is $1,000, your insurer pays nothing. You pay the full repair cost out of pocket anyway.
  • Rate Increases: Filing an at-fault claim or a comprehensive claim can raise your future insurance rates, costing you more over time than the repair itself.
  • Carfax Impact: Filing an insurance claim creates a permanent record on your vehicle's history report, which can lower its resale value more than a minor cosmetic scratch.

When to Report to Insurance

  • Another Driver is Involved: If another driver caused the damage and you have their insurance information, their liability coverage should pay for the fix without raising your rates or requiring your deductible.
  • Severe Damage or Hidden Issues: If a deep scratch is actually hiding structural damage or a dented bumper frame that costs thousands of dollars to fix, using insurance makes financial sense.
  • Vandalism or Hit-and-Run: If your car was vandalized while parked, Comprehensive Insurance may cover it, though you still must weigh the deductible against rate hikes.

Why do I pay a deductible when I'm not at fault?

You pay a deductible when you are not at fault only if you file a claim through your own State Farm collision coverage instead of waiting for the at-fault driver's insurance.

Why You Pay Upfront

  • Faster Repairs: Filing through your own policy gets your car fixed much faster than waiting for the other driver's insurance to investigate and accept liability.
  • Contract Rule: Your own collision coverage requires an initial deductible payment before your insurer pays for the rest of the repair shop bill.
  • Direct Payment: You usually pay the deductible directly to the auto repair shop when the work is finished.

Getting Your Money Back

  • Subrogation: Your insurance company will try to get the money back from the at-fault driver’s insurance in a process called subrogation.
  • Reimbursement: If your insurer successfully recovers the full cost from the other driver, they will refund your deductible.
  • Timeframe: This recovery process often takes several weeks to several months.

How to Avoid the Upfront Deductible

  • Third-Party Claim: You can file a claim directly with the other driver’s insurance company using their liability coverage instead of using your own policy.
  • The Catch: This option can cause major delays if the other insurance company delays the investigation, disputes fault, or has low coverage limits.

What not to tell your insurance company?

Never admit fault, apologize, or downplay your injuries when speaking to an insurance adjuster after an accident.

Statements to Avoid

  • "I'm sorry" or "It was my fault": Insurers treat apologies as a legal admission of liability, which can reduce or eliminate your compensation.
  • "I'm fine" or "I'm not hurt": Adrenaline can mask severe conditions like internal bleeding or traumatic brain injuries that appear days later. Early statements that you are fine are used to deny later claims.
  • Guesses or speculation: Never estimate speeds, distances, or timing. Stick strictly to objective facts you know for certain.
  • Recorded statements: You can decline requests for a recorded interview until you consult legal counsel, as adjusters use these recordings to trap you in inconsistencies.

Safe Communication Guidelines

  • Provide only basic facts like the date, time, location, and your contact or policy details.
  • Refer the adjuster to a qualified Car Accident Lawyer to manage further discussions and protect your rights.

Is a $3,000 deductible high?

A $3,000 health insurance deductible is considered a high-deductible health plan (HDHP) for an individual, but it is close to the national average for standard marketplace plans.

Understanding a $3,000 Deductible

  • Upfront Costs: You must pay the first $3,000 of your medical care out of your own pocket before your insurance starts paying.
  • Monthly Premiums: Plans with a $3,000 deductible usually feature lower monthly payments compared to low-deductible plans.
  • HSA Eligibility: A $3,000 deductible qualifies as an HDHP for family coverage under IRS rules, allowing you to use a tax-advantaged Health Savings Account (HSA).
  • Preventive Care: Under ACA rules, routine checkups and preventive services remain free even if you have not met your $3,000 deductible.

Is it right for you?

  • Good for: Healthy individuals who rarely see a doctor and want to save money on monthly premiums.
  • Bad for: People with chronic medical conditions, frequent doctor visits, or expensive regular prescriptions who would spend more out-of-pocket.