When Is The Car Insurance Deductible Waived?

When it comes to car insurance, the deductible is the amount of money you must pay for auto repairs before your insurance company pays for your claim.  If you get into an accident with $7,000 worth of damage and you have a $1000 deductible, for example, you will pay $1000 to your insurer and they will pay the remaining $6000.  Although much less than the cost of the full repair, the deductible is still often times very expensive and not everyone can afford it.  Fortunately, in some special situations, the deductible can be waived.deductible waiver

Often times, there is only one way in which your insurer can waive your deductible.  And that is when you are involved in a collision with another vehicle and they are determined to be at fault.  Their insurance company will accept full responsibility and then will reimburse you for the full damage involved, deductible included.

One of the few situations in which deductibles can be waived is windshield claims.  Windshield repairs, which are covered by comprehensive coverage policies, are defined separately in most policies.  If you have compressive coverage, you may owe much less (or nothing at all) for a deductible if you are to get your windshield repaired.  If it is a small knick or a small crack on your windshield, your insurer might go ahead and repair it for you at no cost whatsoever.  Call you insurance company to find out for sure if your policy covers windshield damage with no deductible.

In some states, like Michigan, there is a deductible waiver that you can buy or add-on to your policy.  In these states, if you have the deductible waiver, you will not be required to pay your deductible under certain circumstances, for example, you are hit by someone with the same insurance company, or your car is deemed to be a “total loss”, or you are hit by an uninsured motorist.  If you do not buy this waiver, however, you could be out of luck.  Ask your insurance agent if there are any deductible waiver available to add to your policy, otherwise you might end up paying for your deductible in-full come repair time.

Be Careful Of Repair Shops Willing To Waive Your Deductible

Sometimes an auto repair shop will offer to waive you deductible.  They do this, behind the backs of the insurance companies they work with, to entice drivers to patronize their shop for repairs. Usually this is both illegal and unethical as it cuts into the insurer’s profits.  The way it works is that the repair shop would over-inflate the estimate for the repair cost so that the insurer ends up paying the entire amount of the damaged vehicle’s repairs, including your deductible.  This is unethical and fraudulent because it ignores the deductible amount that you agreed to in your policy.

Be wary of auto body shops that offer to lower or waive your deductible.  Not only is this practice illegal, it’s also risky to you, as a consumer.  If they are willing to cut corners with the insurance company, they might cut corners repairing your vehicle or not give it the proper care it needs.  In addition, the chances of a fraudulent repair shop staying in business for the long term is slim-to-none, so don’t even think about them honoring any warranty you might have.

In general, when it comes to car insurance, you should expect to pay some kind of deductible when you get repair work done.  After all, paying a deductible is what you agreed to when you signed your policy. Talk to your insurance agent to get a better idea of what you will owe when it comes time to do repairs.


  Comments: 7

  1. it’s NOT illegal to waive a deductible at all… Where the hell did you get this information?

    Typically your insurance company gives you a check for the damages you could just deposit that check and never get the car fixed as far as insurance is concerned. If you go to a shop with that check and they are able to do the repair for that then there’s no problem at all and no laws are being violated. You are allowed to go to any body shop you want regardless of whether it’s one your insurance does business with or not. If that shop is willing to discount the work equal to your deductible it’s not illegal at all. They can run their shop however they want.

    • Thanks jake for ur info, i didnt think wavei ng the deductible was illeagle either!

    • That’s right Jake it’s not illegal or unethical to waive the deductible. The deductible is paid to the body shop not to the insurance company. If a shop wants to waive it, it’s their business between the consumer and body shop not the insurance companies.

  2. Deductibles are not paid to insurance companies. The deductible is the amount the person agrees to pay. This amount is generally deducted from the estimated cost of repair. Most insurers write their own estimates if over a certain dollar amount. This article is completely wrong. No one pays a deductible to the insurance company.

  3. If the estimate is 1400 and the deductible is waived and the insurance company sends a check for 1900.Who gets the difference?

  4. Wow this place just showed why you shouldn’t get a quote from them. This has never been illegal and as far as Michigan you have that wrong too. I lived their for over 25 years and you do NOT buy anything extra to have your deductible waived.
    You should know what your talking about before posting information like this.

  5. This is partially a hypothetical question because I don’t know what my daughter’s car is worth. So if her car is worth $7,000 and she has a $1,000 deductible but can’t come up with it, can she just get $,6000 and the insurance company just keep the remaining $1,000 for the deductible?

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