Will you have to pay a deductible after an accident? Knowing how deductibles work can make a big difference in your recovery. The last thing you need is a surprise bill when you’re already dealing with insurance claims and vehicle repairs.
At Denver Personal Injury Lawyers®, we’ve helped countless clients navigate insurance claims. Our Denver car accident attorneys know how frustrating it can be to deal with insurers who try to minimize payouts. In this guide, we’ll explain when you might have to pay a deductible and how to reduce your out-of-pocket costs.
What Is a Deductible?
A deductible is the amount you must pay before your insurance company covers the rest of the claim. For example, if your deductible is $1,000 and your repairs cost $5,000, you would pay $1,000, and your insurer would cover the remaining $4,000.
Your insurance policy determines how deductibles apply, depending on who caused the accident and what type of coverage you carry.
When Do You Have to Pay a Deductible?
If You Caused the Accident
If you were at fault, you will likely have to pay a deductible to get your car repaired under your collision coverage. This applies even if another party is also partially responsible.
If Another Driver Was at Fault
When another driver is responsible, their insurance should cover your damages. However, if their insurer delays payment, you might have to pay your deductible upfront. Your insurance company may later recover the costs and reimburse you through subrogation.
Uninsured or Underinsured Driver Accidents
When the at-fault driver has no insurance, you may need to rely on your uninsured motorist coverage. Depending on your policy, you might still have to pay a deductible, though some insurers waive it in these cases.
Hit-and-Run Accidents
If the responsible driver flees the scene, your deductible requirements depend on your policy. If you have uninsured motorist property damage coverage, your insurer might waive the deductible. Otherwise, you may need to pay it under collision coverage.
Real-Life Scenarios of Deductible Payments
To better understand when you may need to pay a deductible, let’s look at a few hypothetical situations:
- Scenario 1: At-Fault Accident – Mark rear-ends another vehicle at a stoplight. His collision coverage applies, and he pays his $1,500 deductible before his insurance covers the rest.
- Scenario 2: No-Fault Accident – Sarah is hit by a distracted driver. The other driver’s insurance covers her car repairs, so she doesn’t owe a deductible.
- Scenario 3: Hit-and-Run – James’s car is damaged overnight by an unknown driver. Since he has uninsured motorist coverage, his deductible is waived, and his insurer covers the damage.
- Scenario 4: Uninsured Driver – Lisa is hit by an uninsured driver. Her uninsured motorist coverage requires a $500 deductible, which she pays before her insurer covers the remaining repairs.
State-Specific Deductible Laws & Regulations in Colorado
Colorado follows an at-fault insurance system, meaning the responsible driver’s insurance should cover damages. However, drivers must carry at least $25,000 in property damage liability. If damages exceed this amount, victims may have to use their own coverage and pay a deductible. Learn more about Colorado’s insurance requirements here.
Additionally, Colorado law prohibits insurance companies from increasing your rates if another driver caused the accident.
Additional Coverages That May Affect Deductibles
Certain insurance coverages can impact whether you need to pay a deductible:
- Gap Insurance – If your car is totaled, gap insurance covers the difference between what you owe and your car’s value.
- Rental Car Reimbursement – Covers the cost of a rental while your car is being repaired.
- MedPay (Medical Payments Coverage) – Covers medical expenses regardless of fault.
What Happens If the At-Fault Driver Can’t Pay?
If the at-fault driver is uninsured or underinsured, you might face challenges in recovering compensation. Many uninsured drivers lack the financial resources to cover accident-related expenses, making lawsuits against them difficult. Even if you win a case, collecting the awarded amount can be nearly impossible if they don’t have assets. Similarly, underinsured drivers may have some coverage, but it may not be enough to pay for all damages, leaving you to cover the remainder.
How Uninsured Motorist Insurance (UIM) Can Help
Uninsured motorist (UIM) coverage is designed to protect you in these situations. If you have this policy, your own insurance will step in to cover damages caused by an uninsured or hit-and-run driver. While UIM coverage can help pay for medical bills, lost wages, and car repairs, policies vary, and some may still require a deductible.
Steps to Take if the At-Fault Driver Lacks Insurance
- File a claim under your uninsured motorist coverage – If you have UIM coverage, this is often the best option for securing compensation quickly.
- Pursue legal action – If the at-fault driver has assets, suing them might be an option, but it can be a lengthy process with no guaranteed outcome.
- Check for additional coverage options – Some insurance policies offer gap coverage or personal injury protection (PIP) that may help bridge the gap when other coverage falls short.
Having an experienced Denver car accident attorney review your options can help ensure you receive the compensation you deserve, even when the other driver can’t pay.
If the other driver is uninsured or underinsured, you have several options:
- File a claim under your uninsured motorist coverage (if applicable).
- Sue the at-fault driver (but collecting payment may be difficult).
- Negotiate a settlement with their insurance company if partial coverage exists.
Step-by-Step Guide to Filing a Claim & Handling Deductibles
- Report the Accident – Notify your insurance company as soon as possible.
- Gather Evidence – Take photos, collect witness statements, and obtain a police report.
- Understand Your Coverage – Check your policy for deductible details.
- Negotiate with Insurers – If liability is disputed, provide supporting evidence.
- Track Expenses – Keep records of repairs, medical bills, and lost wages.
- Seek Legal Help – A Denver car accident attorney can help fight an unfair deductible charge.
How to Negotiate with Insurance Companies
Insurance companies often try to minimize payouts. Here’s how to push back:
- Provide strong evidence – Photos, medical records, and police reports help prove your claim.
- Request a deductible waiver – If the other driver is clearly at fault, your insurer may waive your deductible.
- Appeal a denied claim – If your insurer refuses to reimburse your deductible, challenge their decision.
Can You Get Your Deductible Reimbursed?
In many cases, you may be eligible for a deductible reimbursement, but the process depends on fault determination and insurance policies. Your insurer may recover the cost from the at-fault driver’s insurer through subrogation, reimbursing your deductible. However, this is not always automatic, and delays are common.
To increase your chances of getting reimbursed, you should:
- File a claim quickly – The sooner you start the process, the sooner your insurer can recover costs.
- Keep documentation – Maintain copies of repair bills, medical expenses, and communications with insurers.
- Follow up regularly – Insurance companies may not prioritize reimbursements unless you check in.
- Seek legal help – If your insurer refuses to reimburse your deductible after recovering costs, a Denver car accident attorney can advocate for your rights.
How Long Does It Take to Get a Deductible Reimbursed?
The timeline for subrogation and reimbursement varies:
- If liability is clear – You may be reimbursed within 30-60 days.
- If fault is disputed – The process could take several months or longer.
- If the other driver is uninsured – Reimbursement depends on whether legal action is required.
Why Expert Guidance from a Denver Car Accident Attorney Matters
Insurance companies don’t always play fair. They may try to delay claims, minimize payouts, or deny rightful reimbursements. A Denver car accident attorney can:
- Ensure you receive the full compensation you deserve.
- Handle insurance negotiations on your behalf.
- Prove liability to prevent you from paying unnecessary costs.
- Take legal action if an insurer refuses to pay your deductible or claim.
With legal support, you can focus on recovery while we handle the complexities of your case.
Contact Denver Personal Injury Lawyers® for a Free Consultation
If you’re dealing with a car accident claim and want to understand your deductible obligations, we can help. Our skilled Denver car accident attorneys have successfully fought for accident victims, ensuring they don’t pay more than they should.
Call us today or fill out our online form to schedule a free consultation.
Let us handle the legal work while you focus on moving forward. You shouldn’t have to pay out-of-pocket for an accident you didn’t cause.
