If, after a car accident, I’m considered 65% at fault, do I pay a partial deductible?
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Asked March 26, 2012
If you are involved in an accident and deemed to be 65% at fault, then you must pay for 65% of the damages and injuries involved. The amount of fault simply indicates how much of the costs are your responsibility. You still have to meet the obligations of your insurance contract, such as paying for the deductibles, before your insurance company will make good on the remainder of the claim.
If the accident, for example, resulted in total damages of $10,000, then you would be responsible for $6500, of which your insurance company will pay all but the amount of the deductible shown in your policy. The catch is that the insurance company will not pay $5000 and then wait on you to pay your deductible of $1500. They will wait on you to pay the deductible before the remainder of the claim is paid at all.
With that said, insurance deductibles typically apply to your own property or injuries, but not to the property of someone else. That means that your car insurance company would pay all of the damages and injuries of the other people, but your own repairs and injuries would not get paid until you have invested the deductible amounts.
Deductibles can be a problem if they are not properly set. It is important that your deductibles are within your means to pay. Since the remainder of the claim may not settle until you have paid that amount, having too high of a deductible could result in defaulting on the claim completely, and that would mean you responsible for the entire cost out of pocket instead of only the deductible amount.
The key is that the percentage of fault you share in the accident has nothing to do with your obligation in the insurance contract. Your policy will state that you are responsible for a deductible of X-amount, regardless of the total value of the damages or how much of the blame for the accident rests with you.
Answered March 26, 2012 by Anonymous