Do I pay my deductible to the body shop?

A collision deductible waiver helps drivers save money on their deductible after an accident with an uninsured driver. Collision damage waivers typically apply only to accidents where an identified driver without insurance is completely at fault. A notable exception is California, where collision deductible waivers can be used in hit-and-run accidents. … read full answer

When a Collision Deductible Waiver Is a Good Idea

Collision deductible waivers are similar to uninsured motorist property damage (UMPD) insurance, so a waiver is usually redundant if you are already required by your state to have UMPD. In states where UMPD is optional or unavailable, collision deductible waivers can be a great alternative for the same type of coverage. However, keep in mind that you cannot purchase a collision deductible waiver without collision insurance.

Collision Deductible Waiver Cost

The cost of a collision deductible waiver is usually less than $50 for your entire policy term. Although collision deductible waivers can only be used in a limited number of situations, their low cost means they are a good investment if you want to avoid any out-of-pocket expenses in the event that you’re hit by an uninsured motorist.

Finally, it should be noted that collision deductible waivers are different from collision damage waivers, which are sold by rental car companies to cover damage to their vehicles.

A collision insurance deductible is the amount of money that a driver must pay out-of-pocket when filing a collision insurance claim. Collision insurance pays to repair or replace a car damaged in an accident, and a driver must pay their collision deductible before their insurance company will cover the remaining costs.… read full answer

Collision Deductible Example

Say you are at fault in an accident that causes $10,000 in damage and you have a collision deductible of $1,000. You are responsible for covering your $1,000 collision deductible out-of-pocket in order for your insurance company to pay the remaining $9,000.

Collision Deductible Amounts

Collision deductibles typically range from $100 to $1,000, and you select your deductible amount when you purchase your policy. The higher your deductible, the cheaper your premium will be. Although it’s tempting to get a higher deductible in order to pay less upfront, you should only choose a deductible that you can afford to pay if your car is suddenly damaged in an accident.

You have to pay a car insurance deductible when you file a claim with your own car insurance company after most types of incidents. For example, if you cause an accident that damages your vehicle, you will need to file a claim with your own collision insurance and pay your collision deductible.… read full answer

Some types of coverage, like liability insurance and MedPay, never require deductibles, though.

You’ll Have to Pay a Car Insurance Deductible If:

• You use your personal injury protection to pay for your own medical expenses, regardless of fault.
• You use your collision insurance to pay for your vehicle damage after an accident you caused.
• You use your comprehensive insurance to pay for non-accident-related damage to your vehicle, such as from theft or a natural disaster.
• You use your uninsured motorist property damage insurance to pay for your vehicle damage if you’re in an accident with an uninsured or underinsured driver.
• You use your collision insurance as supplemental coverage if you are not at fault.
• You and another driver share the fault for an accident.

In some situations, you may need to use your own collision insurance to repair your vehicle while the insurance adjusters determine who is at fault. Although you may need to pay your deductible initially in that case, your insurance company will recover your deductible from the at-fault driver through subrogation if you are found to be not at fault.

You Will Not Have to Pay a Deductible If:

• You are not at fault for an accident. The at-fault driver’s liability insurance will cover your property damage and medical expenses.
• Another driver files a claim with your insurance. You do not have to pay a deductible for your liability insurance to cover them.
• You use MedPay to cover your own medical expenses, regardless of fault.
• You use uninsured motorist bodily injury coverage after an accident with an uninsured or underinsured driver.

Also, if you are using your comprehensive insurance to cover windshield damage, some states mandate that the deductible must be waived.

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