If you’ve been in an auto accident anywhere in Texas, several worries and questions are going to cross your mind, one of which is “Who pays for my deductible?” Texas follows a fault-based insurance system, meaning the at-fault driver’s insurance usually covers damages, but do you pay the deductible if you’re not at fault?
If you’re not at fault for an accident, you shouldn’t have to cover your deductible in the end, but that’s not always how it works at first. If you file through your own insurance to speed up repairs, you’ll usually pay your deductible upfront. Your insurer may try to recover it from the at-fault driver’s insurance through subrogation, but that process can take time and isn’t always successful. In this article, we’ll explain what you need to know about this common yet tricky question.
How the Texas Fault-Based Insurance System Works
Like most states, Texas operates under a fault-based insurance system, rather than a no-fault system. This means the driver who caused the accident is responsible for paying damages to the other parties. When fault is clear, the at-fault driver’s liability insurance covers property damage, medical expenses, and other losses for the other driver and their passengers.
Since Texas follows this fault-based system, you have two main options for handling your insurance deductible when you’re not at fault.
- You can file with the at-fault driver’s insurance carrier directly, which means you won’t pay a deductible at all if they accept liability.
- You can file with your own insurance carrier first, but this typically means paying your deductible upfront while your insurer seeks reimbursement from the at-fault driver’s insurance provider.
Many drivers choose the second option because filing with your own insurance often speeds up repairs. However, you’ll need to pay your deductible upfront, and your insurer will attempt to recover this amount from the at-fault driver’s insurance through subrogation. This procedure can take several weeks or months, and there’s no guarantee your insurer will successfully recover your full deductible.
What Happens When You’re At Fault?
The situation changes completely when you cause an accident. In this case, you pay your own insurance deductible for repairs. Your liability coverage covers damages to the other driver’s vehicle and medical bills, but not your own vehicle damage. You’ll need collision coverage to repair your car, and you must pay the associated deductible.
If you only carry liability insurance without collision coverage, you’ll pay for all vehicle repairs out of pocket. Texas doesn’t require collision coverage as a general rule, but without it, your insurer won’t help with vehicle repairs.
The deductible amount varies based on what you choose when purchasing your auto insurance policy. Common amounts in Texas range from $250 to $1,000 for collision coverage. Higher deductibles often result in lower monthly insurance premiums, but they increase your out-of-pocket costs when accidents occur.
How to File an Insurance Claim After an Accident
Regardless of who’s at fault, you should take immediate action after an accident in Texas. Contact your insurance company immediately, as many insurers have 24-hour claim reporting hotlines and mobile apps for convenient filing. Quick reporting helps preserve evidence and speeds up the claims work for all parties involved.
When you contact your insurer to file a claim, you’ll need certain information about the accident and other parties involved. This includes the other driver’s insurance information, police report number, and photos of vehicle damage and the accident scene. Your insurer will assign a claims adjuster to investigate and determine fault based on this information.
You also have the option to file directly with the at-fault driver’s insurance company instead of your own. If you choose this route, you won’t pay a deductible upfront. However, their adjuster must accept liability before they’ll authorize repairs or issue payment, and this can take longer than filing with your own insurance, especially when fault is disputed.
You should contact a car accident attorney immediately after the accident, especially if you’ve suffered injuries or major property damage. An experienced attorney can file your claim on your behalf and fight for fair compensation. They can also make sure you don’t accept inadequate settlements and or speak to adjusters who may try to minimize your claim.
Different Types of Coverage and Their Deductibles
Each type of auto insurance coverage in Texas has different rules about when and how deductibles apply:
- Collision coverage helps pay for your vehicle repairs after an accident, minus your chosen deductible. This coverage applies regardless of who caused the accident, which helps you get your car repaired quickly. Without collision coverage, you depend entirely on the at-fault driver’s insurance for repair costs.
- Comprehensive coverage protects against non-collision damages like theft, vandalism, hail, or hitting an animal. Like collision coverage, it includes an insurance deductible that you pay out of pocket. Some drivers choose different deductible amounts for collision and comprehensive coverage based on their financial situation.
- Liability coverage doesn’t have a deductible because it pays for damages you cause to others. This coverage is mandatory in Texas, with minimum policy limits of $30,000 per person for bodily injury and $25,000 for property damage. Higher coverage limits provide better protection against lawsuits after serious accidents and cover medical care for injured parties.
How Do You Get Your Deductible Back?
If you’re not at fault but pay your deductible initially, your insurer will attempt to recover the full claim amount, including your deductible, from the at-fault driver’s insurance. However, this recovery isn’t guaranteed. Subrogation only works when the at-fault driver has active liability insurance – if they don’t, your insurer can’t recover your deductible through this method. If they do, most companies return your deductible within 30-90 days after successful subrogation.
If the at-fault driver lacks insurance or has insufficient coverage, recovering your deductible becomes more challenging. Your insurer may pursue the at-fault driver personally, but collection can be difficult if they don’t have much in terms of assets. Uninsured motorist coverage can help in these situations, but it may still require a deductible.
Some insurance companies offer deductible waiver programs for certain types of claims. These programs may waive your deductible when you’re hit by an uninsured driver or when particular conditions are met. Check your current policy or ask your agent about available deductible waiver options.
What Happens When Fault Is Disputed?
Sometimes fault isn’t immediately clear after an accident, leading to disputes between insurers. Both companies may investigate independently and reach different conclusions about who was responsible for the crash. When fault is disputed, the claims procedure usually takes longer and may require additional evidence to make a final determination.
Police reports help establish fault, but they’re not always definitive in insurance company investigations. Adjusters also consider factors like traffic law violations, witness statements, vehicle damage patterns, and accident reconstruction findings. When they’re done, they tend to assign percentages of fault to each driver.
The outcome of these investigations affects your deductible responsibility because Texas follows a modified comparative negligence rule. This means you can recover damages even if you’re partially at fault. However, if you’re over 50% responsible for the accident, you can’t recover medical expenses or any other compensation from the other driver, and your percentage of fault also reduces any compensation you receive. That’s why hiring a personal injury attorney to protect your rights is so important.
The Importance of Uninsured and Underinsured Motorist Coverage
Given the challenges of collecting from at-fault drivers, protection against uninsured and underinsured motorists becomes especially important. Texas law requires insurers to offer uninsured and underinsured motorist coverage, but you can reject it in writing. (If you didn’t opt out, this coverage may be available even if you’re unsure you selected it.) This coverage, which protects you when an at-fault driver has no insurance or when you’re the victim of a hit-and-run, usually includes both property damage and bodily injury protection.
Underinsured motorist coverage helps when the at-fault driver’s insurance limits are too low to cover your damages. For example, if you have $50,000 in damages but the at-fault driver only has $25,000 in coverage, underinsured motorist coverage can help pay the difference. Both uninsured and underinsured coverage may require deductibles.
Your insurer may try to subrogate against uninsured drivers personally to recover deductibles and claim payments. However, many uninsured drivers lack sufficient assets to pay judgments. This reality makes having adequate uninsured motorist coverage important for Texas drivers.
How Can You Get Your Deductible Back?
When insurers refuse to pay your deductible or can’t reach a fair settlement agreement, legal action may become necessary. Texas drivers have several remedies available to recover deductibles from at-fault parties, ranging from attorney representation to small claims court proceedings.
- Attorney assistance can help recover your deductible by negotiating with insurance companies or filing a lawsuit against the at-fault driver. An attorney can help you determine whether legal action makes sense for your situation. This is likely to be the case when serious injuries are involved or when damages exceed insurance limits.
- Small claims court offers another option. Texas small claims courts handle disputes up to $20,000, making them suitable for most deductible recovery cases. The proceedings are simpler and less expensive than filing in regular civil court.
It’s recommended that you do a cost-benefit analysis before taking legal action. For small deductibles, the effort may not be worthwhile unless you’re also seeking maximum compensation for other damages. Success also depends on the at-fault driver’s ability to pay – many uninsured drivers don’t have enough assets to satisfy court judgments, making collection difficult even if you win. This is why having adequate insurance coverage remains your best protection against deductible losses.
Questions About Insurance Deductibles?
Determining who pays your deductible after a Texas accident depends primarily on fault and how you choose to file your claim. When you’re not at fault, you may still need to pay your deductible upfront if you file with your own insurer, though you may get reimbursed later through subrogation. Knowing your coverage options and the limitations of deductible recovery helps you set realistic expectations about the claims process.
If you’re struggling with deductible disputes or insurers aren’t treating you fairly, call an experienced car accident lawyer. At Texas Law Guns, Injury & Accident Lawyers, our skilled attorneys can help you recover your deductible and other damages related to the accident. Contact us today for a free initial consultation and learn more about your recovery options.
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Alexander Begum has tried over 50 trials to verdict and tried or settled over $500 million in cases. Alex is a founding shareholder of the Texas Law Gun, Injury and Accident Lawyers.