When am I responsible for my auto deductible?

Question

Hi,

I recently had a little auto accident, no one injured but the car is a bit bent up and needs to be repaired. When will I be responsible for paying my insurance deductible? Will I have to come up with the money and have it ready when they fix the car? Or is it something that I settle up with my insurance company later?

Thanks. I have Progressive auto if that makes a difference.

Answer 1

You are responsible to pay whatever the deductible is when damage is deemed to be your fault. If the damage is the same or less than the deductible amount, you would be better off not reporting it to your insurance and just pay it out of pocket. If you have a shop fix it through your insurance they will receive a check from your insurance minus the deductible amount which you pay them.  

Answer 2

Yes. Your deductible will apply.

When you took out your policy you agreed to pay for the first  $(deductible amount) if the insurance company would pay for the balance.

Your deductible is applied on a per occurrence basis. That means it applies per claim. (Its not like health insurance where you meet the deductible once for the year).

Your deductible applies any time you use your Collision or Comprehensive coverage -- regardless of fault.

If the damage is less than your deductible - the insurance company does not pay anything.

If the damage is over the deductible - the insurance company will write an estimate and subtract your deductible from the amount of the estimate. That is how much they pay you.

When you get the car fixed - you pay the deductible to the repair shop. You will have to pay the deductible in full -- the shop will not take payments on it and will not release the car until you have paid it to them.

Answer 3

Your collision deductible comes into play if you are in a car accident and you are at fault.  The insurance company will pay you the money to repair your vehicle minus your deductible amount.

Answer 4

Find out how much your deductible is and get an estimate.  If it is less than you deductible I would just pay it out of pocket.  If it is more than make a claim.  The repair shop will send Progressive the bill and progressive will bill you for the deductible.  OR  the shop will contact Progressive and find out you have a $500 (let's just say that) deductible and your car will cost $1000.  They will get the $500 from you and then the other will come from the insurance.  Other times Progressive sends out a consultant who estimates the repair costs and gives you a check for them (less the deductible) and you find a place to repair at your own will--this is why we see so many dented cars on the road.  Many people get the money and keep it instead of getting cars fixed which is wrong and makes our streets look that much more trashy.