Insurance and deductibles

[NickfromWI]

Question:

I have a $1,000 deductible. I get hit. Our insurance company says they reviewed it and I was 0% at fault.

They make me pay the deductible still.

Is that right?

I called them out on it and they said,

I reviewed your policy and it does hold at $1,000 deductible. The $1,000 deductible is essentially what you chose to pay should you have a loss or in other words, it is another form of a co-pay. I understand you were found not at fault for the loss, but that, in itself, does not negate your deductible.

So do I have to pay the deductible if I am not at fault?

love
nick

 

[tophopper]

Yes you pay. If they agree to pay you 1500. bucks for the repairs. They will issue you a 500. dollar check. No matter who is at fault.

You can choose a lower deductible, but your premiums will go up to reflect the difference.


Its very similar to payroll taxes. You can now or pay later. Either way you pay eventually.

 

[tophopper]

For auto, I carry a 500 deductible figuring I can afford a little bit more of a monthly premium, whereas if I suffered a loss or claim, I dont want to pull a thousand bucks out of my ass. Which essentially is what you have to do.

 

[NickfromWI]

So let me get this straight. If I'm pissed at you and you have a $500 deductible and I run in to your car, even though the insurance will cover the costs, you are still out your $500 so I CAN exact revenge on you by hitting your car?

That can't be right. Please someone tell me tophopper is mistaken!

 

[tophopper]

They will cover the costs on my car less the 500 deductible. I don't understand how you'd be exacting revenge, when you car will need repairs too, and you'll be paying for whatever your deductible costs are to repair yours.

 

[tophopper]

So you pissed someone off and they crashed into you?

 

[CurSedVoyce]

But really Nick..... Seriously..... The real question is.... WTF did you do??!!

 

[NickfromWI]

No way- you're not following me. I'm being theoritical here. I could have a crappy car that I don't intend to repair so it's not costing me ANYTHING and it will cost you $500. Then after you get it fixed I'll swing by and do it again...on accident of course....and it'll cost you ANOTHER $500? Or I could just smash it with a brick so it won't cost me a thing and it WILL cost you $500. Bam. Problem solved.

The actual scenario is that our chipper truck was hit while parked. It wasn't even being driven and it was legally parked and someone swerved into it. Repair estimate said $1,400 and I have to pay $1,000 of it. That's a load of crap. The damage wasn't "that" much. They bent the door slightly. But I want my stuff looking as good as possible for as long as possible.

I'm going to find out whoever came up with the idea of a deductible and smash their car...with a brick.

 

[tophopper]

Lol......sorry to hear your woes. Your theoretical story is correct though. Someone could in theory, vandalize your car in your driveway multiple times and if choose to file claims every time to get it repaired you pay the deductible. Its been a long while since I myself have made a claim and had to pay a deductible, if memory serves me it is a per occurrence deductible or is it annual? That is a question worth asking you agent. Id bet, per occurrence.

Sorry to hear about the chipper. If I know Nick, he wont let 1000 bucks stand in the way of having beautiful equipment.

 

[NickfromWI]

Luckily it wasn't the chipper but the actual chip Truck!

And the damage done isn't something that another person would really notice unless they were inspecting for damage. However, it is hard to lock and unlock the door with the key now...grrrr

It's slightly moot because the truck will be getting painted in the next few months anyways! But I do want to replace the door and don't want to pay $1000 to do it.

 

[lumberjack]

If you're filing this under your insurance, you'll pay a deductible. If you have the other person's insurance, it is filed on there and you pay nothing.

Example, dude turns in front of me, I hit him, his fault. He pays, I pay nothing.

Example, someone hit's my vehicle in a parking lot, doesn't leave any info. I file it under my uninsured coverage. I have to pay my deductible for that coverage.

 

[NickfromWI]

Exactly. I have a letter from my insurance saying they've finished reviewing the case and they determined I am not at fault.

So why am I paying a deductible.

 

[rumination]

Because there's no one else to get the money from. IF you could identify the party that damaged your truck, and IF they had insurance, THEN you wouldn't have to pay a deductible. They would be paying it.

I know, it sucks.

 

[NickfromWI]

Oh- we know who did it! The lady pulled over, apologized, said she must've misjudged the distance and everything. This is why I'm confused.

 

[SouthSoundTree]

So are you going for a comprehensive claim from your insurance co, rather than the woman's auto liability insurance?

 

[NickfromWI]

Well that's the thing. I didn't file a claim with my insurance. This is where it all gets F'd up.

I called my insurance and told them what happened. They said that it didn't seem like I needed to file a claim, but they wanted to take a report so they have the details when they need them. So I did that.

I never got a estimate for repairs. Someone came to my house and inspected the truck when I wasn't even there. I don't know if they were from my insurance or theirs.

A few weeks later I get a check in the mail for the repair cost minus the deductible.

I tend to be really good about crossing my Ts and dotting my Is. This one just was a clusterF. I couldn't keep track of anything and I feel like both insurance companies were in collusion against me. "Just keep him confused and maybe neither of us will have to pay that much!"

 

[FJR]

If you have the lady's information that hit you, why don't you call her insurance company?

 

[flushcut]

You got charged your deductible because your Ins Co. knows you were in a crash, and maybe she does not have enough coverage.

 

[Reddog]

Nick,
Deductibles and laws on how they are paid vary by every state. So you need to understand how Ca handles them, not some random state of another member.

But most likely yes you have to pay the first 1K in your case. Some states you can then take the person at fault to court to be reimbursed for that.

 

[MasterBlaster]

It costs me over 2 bucks a day for liability ins for my daily driver, and I haven't had a wreck in my entire life. My only speeding ticket was 15 years ago.

Insurance is a complete rip-off.

 

[Bermy]

Your insurance shouldn't have anything to do with it, she hit you, she admitted it, it should be her insurance repairing your truck...that's the way I see it.
I carry insurance to pay for something I do to others, and I have a $1000 deductable also, so if I did some damage to someone else, I'd expect to have to pay the first $1000. I do something to someone else and their insurance covers the damage I did?...I don't think so!

 

[NickfromWI]

Wanna read the craziest email I just got?...

"Dear Mr. Araya,

You deductible has really nothing to do with fault. It is the amount you chose to pay up front when you have a loss. I was trying to explain that your deductible works like a co-payment. Upon you submitting a claim, if you want to address any damage to your vehicle, then you told us (when you bought the policy) that you would pay your deductible and Progressive would then pay anything above that amount. There is no wording in your policy that states if the other party is negligent, that Progressive will waive your deductible. The wording says that if Progressive is able to recover the amount of total damages from the negligent party, then Progressive would reimburse you your deductible.

However, in light of your experience with the claims process, I will make the exception to forward your $1,000.00 deductible to you.

As I mentioned in the earlier e-mail, both insurance companies will submit all their documentation to the Arbitration board. Once the board has reached a decision, we will let you know of their decision and if Progressive will be able to recover from the other insurance company.

Thank you,..."


love
nick

 

[MasterBlaster]

So, you pushed and they backed down. Kinda like some dental work I had done... when I told them I didn't have insurance, they cut the price in half.

 

[flushcut]

when I told them I didn't have insurance, they cut the price in half.

That happens A LOT and it never hurts to try.

 

[NickfromWI]

But I've never had an insurance company give in so quickly. I'm pretty stoked right about now.


love
nick