completely or in part, your insurer may get reimbursed by the other driver’s insurance. This is called subrogation. If this happens, be sure to ask if your deductible can be reimbursed, as well — this will depend on the insurance company and the coverage. In an at-fault state, if you decide to file your claim with the other driver’s insurance, it’s quite possible you won’t have to pay for a deductible, although not guaranteed. However, if they determine you’re fully or partly at fault, the subrogation process will happen here, too — this time with their company being reimbursed by yours.
Pro Tip: Make Sure You Can Afford Your Deductible
Unfortunately, there are instances in which people have to pay their deductible even when the other driver is completely at fault. You can’t really protect against this in at-fault states because you don’t know what coverage another driver will have — or if they’ll even have insurance at all. So, although a higher deductible will lower your premium, always be sure you’re able to actually pay, it should you need to. The process is a little different in a no-fault state. As I’ve already talked about, there are differences within each state, but in general, your insurance company will pay damages directly to you without having to prove the other person was in any way at fault, saving you and your insurer a lot of time and energy. The downside is that you won’t get “pain and suffering” and or other damages, just payments for medical bills and any lost earnings. Sometimes they’ll cover services you have to pay someone else to do because your injuries make it hard for you, such as hiring a cleaning service for your home.
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