What happens if you can't pay your car insurance deductible?

Question

You can avoid paying your car insurance deductible for vehicle repairs if the mechanic agrees to waive it, which is possible but highly unlikely. In some cases, your insurer may also waive your comprehensive deductible for glass repair specifically. Otherwise, if you are filing a car insurance claim with a type of coverage that has a deductible, you have to pay it.… read full answer

Types of Car Insurance That Don’t Require a Deductible

Not every insurance claim requires you to pay a deductible. For example, many insurers waive comprehensive deductibles for glass repair, and some states allow drivers to choose a separate $0 glass deductible.

In addition, if you are in an accident and another driver is at-fault, your costs will be covered by their liability insurance, which doesn’t require you to pay anything out of pocket. If you choose to use your collision coverage or personal injury protection insurance to cover immediate costs, you will have to pay your deductible. However, your insurance company will eventually recoup your costs from the at-fault driver’s insurer.

On the other hand, you may have to pay a deductible if you are hit by an uninsured motorist and have to use your uninsured motorist property damage insurance, though it usually depends on your state.

What To Do If You Can’t Afford Your Car Insurance Deductible

If you want to file a claim but cannot pay your deductible, you have a few options. You can set up a payment plan with the mechanic, put the charge on a credit card, take out a loan, or save up until you can afford the deductible. Depending on your state and insurance company, you could have anywhere from 30 days to a few years to file a car insurance claim after an accident.

Because it’s almost impossible to avoid paying your car insurance deductible in situations where it actually applies, it’s important that you pick a deductible amount you can afford. To learn more, check out WalletHub’s guide to car insurance deductibles.

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Answer 1 · 2021-01-18 22:39:16

WalletHub, Financial Company

@WalletHub • 01/18/21 This answer was first published on 01/19/21 and it was last updated on 01/18/21.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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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 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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What happens if you can't pay your car insurance deductible?

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