A claim with your insurance company will usually cover any damages your car suffered while getting it washed. As long as you don't sign a subrogation waiver, your insurance company is free to try and recoup their losses through the subrogation process.
Subrogation describes the process in which an insurance company attempts to recover losses from a third party that caused the damages or loss incurred by the insured. Since this process takes place entirely between insurance companies, policyholders aren't usually involved. You can however, always discuss with your agent if they believe it's prudent to pursue a subrogation claim, as it can be different on a case by case basis.
No, you do not have to pay subrogation if you have car insurance. Subrogation is when an insurance company recovers money that they paid out in a claim when their policyholder was not at fault, and if the drivers involved are insured, the process of subrogation will take place between their insurance companies. If the at-fault driver was uninsured, however, the other driver’s insurance company might attempt to make them pay for the damage out of pocket through the subrogation process.… read full answer
In other words, the only time you might need to pay as a result of subrogation is when you don’t have enough insurance coverage. And even then, if you choose to not pay a subrogation claim, the insurer will continue to mail requests for reimbursement or might decide to take legal action.
Subrogation Payment Example
Driver A rear ends Driver B. Driver B files a claim with their own collision insurance, pays their deductible, and receives a payout from their own insurance company, Insurer B.
Insurer B doesn’t want to pay for the damage caused by someone else, so they begin the process of subrogation with Driver A’s insurance company to recover the deductible and claim amount.
How the Subrogation Process Works
If you receive a letter of subrogation from another insurer, you should immediately let your own insurance company know. Car insurance companies have lawyers, subrogation adjusters, and other experts who will handle the demand and let you know if they need any information from you.
If you do not have insurance, a letter of subrogation is a sign that you might need to hire a lawyer. In this case, the other driver’s insurer will likely pursue a settlement or even litigation against you. Individual cases vary, so legal representation can help you determine whether you need to pay subrogation.
For more information, check out WalletHub’s guide to subrogation.
You should file an insurance claim when you can’t afford to pay cash for damages or medical bills that your insurance policy will cover. You should pay out of pocket instead of filing an insurance claim if the repairs or medical bills incurred in an accident that you cause will cost less than your deductible.… read full answer
For example, it might be worth it to pay for a minor fender bender yourself, especially if the accident was your fault or you’ve filed a claim recently. Your claims history is important because the more claims you make, the more of a risk you are in the eyes of insurance providers. You could see higher premiums, or even have your canceled outright, as a result.
When to Consider Paying Out of Pocket
You have comprehensive or collision insurance and there is only minor damage to your vehicle.
Repairs cost less than your insurance policy deductible.
You have recent claims or tickets on your driving record.
When You Should File an Insurance Claim
There is major property damage that will cost more than your deductible to repair.
There are injuries.
The accident involves other vehicles.
You have accident forgiveness on your insurance policy.
Keep in mind that if you’re in a car accident, you should notify your insurance provider of the incident whether you plan on filing a claim or paying out of pocket yourself. All major insurers require customers to report all accidents, no matter the size.
Also, if you’re in an accident that’s not your fault, you should file a claim with the at-fault driver’s insurance provider so that it pays its portion of any medical bills or property damage you incurred in the accident. How much the at-fault driver’s insurance provider will pay out depends on the driver’s policy limits and their state.
Filing a claim will increase car insurance premiums from 3% to 32% on average for three to five years in almost all cases. How much your rate goes up depends on several factors, like the claim type and amount, your insurance company, your claims history, your location, and whether or not you have accident forgiveness.… read full answer
The most significant factors affecting how much your rates go up after an accident are the claim type and amount. Accidents that you cause will raise your premium the most, especially if the damages are over $2,000. Although prices don’t jump as much when you’re not at fault or the incident was beyond your control, you’ll probably still see a rate increase.
Average Rate Increase
Bodily Injury, At-Fault
Property Damage, At-Fault (over $2,000)
Property Damage, At-Fault (under $2,000)
Comprehensive (over $2,000)
Comprehensive (under $2,000)
It may seem unfair, but insurance companies are within their rights to raise your rates after a claim, even if the accident was not your fault. Insurers charge based on risk, and statistics show that you’re more likely to make additional claims if you’ve recently filed one.
Some insurance companies charge more than others after not-at-fault accidents, though. Progressive charges the most, raising rates by more than 16% on average. State Farm, on the other hand, doesn’t increase prices if their customer is not at fault.
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