Can I make payments on my car insurance deductible?

Question

If you can’t pay your car insurance deductible, you won’t be able to file a car insurance claim to have vehicle damage or medical bills paid for by your insurance company. Instead, you will need to set up a payment plan with a mechanic, take out a loan, or save up until you can afford the deductible. On the other hand, in the case of an accident that you did not cause, you can immediately file your claim with the at-fault driver’s ... read full answer liability insurance to avoid paying a deductible altogether.

If you need to wait to file a claim, you’ll have anywhere from 30 days to a few years, depending on your state and insurance company. Once you file a claim with your own insurer, there is almost no way to avoid paying your deductible. Even if the insurer doesn’t require you to pay the deductible upfront, they will subtract the amount from their final payment, leaving you responsible for any remaining balance.

Your best option is to negotiate a payment plan with the mechanic before they start repairs. This is key because mechanics might not repair your car until they get paid, or they might keep the repaired vehicle until your debt is settled.

It’s rare for mechanics to waive the remaining balance – your deductible – altogether, even if they’re already making a large profit. It’s also considered insurance fraud if a mechanic overcharges your insurance company to compensate for a waived deductible.

Since your options are limited when you can’t pay your car insurance deductible, it’s important to pick a deductible that you can afford when buying a policy. To learn more, check out WalletHub’s guide to car insurance deductibles.

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Answer 1 · 2023-01-18 15:27:24

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Delaney Simchuk, Car Insurance Writer

@delaney_simchuk • 01/18/23 This answer was first published on 01/18/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, you can make payments on your car insurance deductible since some repair shops offer payment plans. If you can’t afford to pay your deductible, other financing options include using a specialty credit card, taking out a loan, or saving up before filing your claim. However, insurance companies do not offer payment plans.

It is important to note that if your car insurance claim results in a payout to you, your deductible will just be subtracted from the payout. For instance, say your car was totaled in an accident, you filed a collision insurance claim, and the insurance adjuster determined the actual cash value (ACV) of your car to be $3,000. If your collision insurance deductible was $500, your insurer would simply subtract $500 from the ACV of your vehicle, and the settlement would be $2,500.

What to Do If You Can’t Pay Your Deductible in Full

Discuss a payment plan with the mechanic. Generally, an insurance company will pay the repair shop for a covered claim, leaving only the deductible for the policyholder to pay directly to the shop. If you can’t afford the deductible, you might be able to arrange a payment plan. For example, repair shops may offer financing options such as a 6-to-12-month payment plan through a third-party bank or lender.

Get a credit card for vehicle repairs. One of the most popular cards for this is the Synchrony Car Care™ Credit Card, which allows you to pay for unexpected vehicle repairs over time with special financing.

Take out a personal loan. A personal loan is a borrowed sum of money that can be used for anything. You can apply for a personal loan from a bank, a credit union, or an online lender. Most personal loans require full payment in 12 to 60 equal monthly installments.

Consider deferring your claim. If your car insurance claim is not urgent, you can wait to file your claim until you have saved up the money for the deductible. For instance, if your car’s roof was damaged by hail but your car still functions, you can delay making your car insurance claim until you can afford the deductible. In most states, you have at least two years after the event to file your claim.

To learn more, check out WalletHub’s guide to car insurance deductibles.

Can I make payments on my car insurance deductible?

Delaney Simchuk, Car Insurance Writer

What to Do If You Can’t Pay Your Deductible in Full

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