I wasn’t at fault for the accident and the other driver has insurance. The total cost of repairs is $5500, and insurance will cover everything except my $2000 deductible.
At first, you’ll need to pay the $2000. If you’re really not at fault, the other driver’s insurance should pay back your insurance for the damages, including your deductible. Then your insurance will give you the $2000 back.
@Luca
When I spoke to my attorney and the insurance, they said the $2000 would be taken out of my payout and I wouldn’t have to pay it upfront.
Lennon said:
@Luca
When I spoke to my attorney and the insurance, they said the $2000 would be taken out of my payout and I wouldn’t have to pay it upfront.
That doesn’t sound right. If the shop spent $5500 to fix your car and your insurance paid $3500, the shop will still want the full $5500 before releasing the car. Once your insurance collects from the other driver’s insurance, you’ll get your $2000 back.
Lennon said:
@Luca
When I spoke to my attorney and the insurance, they said the $2000 would be taken out of my payout and I wouldn’t have to pay it upfront.
Yes, your insurance will subtract the $2000 from your payout, but the repair shop still needs the full $5500 to release your car. If insurance pays $3500, you’ll need to pay the shop the remaining $2000.
Lennon said:
@Luca
When I spoke to my attorney and the insurance, they said the $2000 would be taken out of my payout and I wouldn’t have to pay it upfront.
When I spoke to my attorney and the insurance, they said I wouldn’t have to pay the $2000 to the insurance company. The shop, however, still expects to be paid.
@Elliott
You might want to reconsider your lawyer. Your deductible gets deducted from the payout, so insurance will only pay the shop $3500. They won’t release the car until they get the full $5500, so you’ll need to pay the shop the difference if you want your car.
Typically, if you’re using your insurance, they will pay the shop and send a check for the total payout minus your deductible. When you pick up your car, you’ll pay the deductible directly to the shop. If your insurance recovers from the other driver’s insurance, they’ll reimburse you.
@Zeke
What if I don’t have the $2000 when the car is finished? Will I have to wait until they send me the reimbursement?
Lennon said:
@Zeke
What if I don’t have the $2000 when the car is finished? Will I have to wait until they send me the reimbursement?
Why did you choose a $2000 deductible if you weren’t prepared to pay it?
Lennon said:
@Zeke
What if I don’t have the $2000 when the car is finished? Will I have to wait until they send me the reimbursement?
You probably shouldn’t have authorized the repairs without being ready to pay the deductible. I’d suggest you contact your adjuster to see if they can waive it. Some companies do that when liability is clear and there’s no coverage issue.
@Zeke
Should I have just waited for the insurance before starting repairs?
Lennon said:
@Zeke
Should I have just waited for the insurance before starting repairs?
Yes, if you weren’t prepared to pay the deductible, you should have waited. Now, I’d suggest talking to your adjuster about waiving the deductible. If they can’t help, try reaching out to the at-fault driver’s insurance. If that doesn’t work, you may have to use a credit card or look into a loan, though that’s not ideal.
Lennon said:
@Zeke
What if I don’t have the $2000 when the car is finished? Will I have to wait until they send me the reimbursement?
If you don’t have the $2000, you won’t get your car back. No shop will release the car until it’s paid for in full. Keep in mind that if your car stays there too long, you may get charged daily storage fees, and they can even declare it abandoned if left too long.
From my experience, you’ll just need to pay the $2000 directly to the body shop when you pick up your car.
Usually, you’ll pay the $2000 deductible when you pick up your car. After that, your insurance should try to recover the deductible from the other driver’s insurance. If they do, you’ll get the $2000 back.
The deductible is generally paid to the repair shop. You pay the deductible, and your insurance pays the repair shop’s amount due. You don’t need $2000 in cash; you can use a credit card to pay. Deductibles only get deducted if the car is totaled, and you’re paid a settlement.
If the other driver’s insurance is paying, you shouldn’t have to pay anything out of pocket. But if it’s your insurance, you’ll need to pay the deductible directly to the shop. Once your insurance recovers the payout from the other company, they’ll reimburse you for your deductible.