Getting into a car accident is stressful enough, but figuring out who pays the deductible in a car accident can add even more confusion to an already overwhelming situation. Whether you were hit by another driver or involved in a multi-car collision, questions about insurance coverage and out-of-pocket expenses are likely at the top of your mind. Many drivers assume that the at-fault party will cover everything, but that’s not always how it works in New Jersey.
This article will walk you through everything you need to know about deductibles after an accident: Do I have to pay a deductible if someone hit me? Do I get my deductible back if I’m not at fault? And most importantly, how can a New Jersey car accident lawyer help me navigate the process?
At Glugeth & Pierguidi, P.C., we help accident victims across New Jersey recover the compensation they deserve. We know how insurance companies operate and how to push back when they try to underpay claims or unfairly stick you with the bill.
When you’re in a crash, the question of who pays the deductible can feel like another punch you didn’t need. If not, you may owe nothing—though it may take time for your insurer to recover the cost if they already paid for your repairs.
What Is a Deductible?
A deductible is the amount of money you must pay out of pocket before your auto insurance coverage kicks in to cover a claim. It’s essentially your share of the risk in the insurance contract. When you purchase an auto insurance policy, you agree to pay a certain deductible amount for each type of coverage, such as collision, comprehensive, or personal injury protection (PIP).
For example, if your policy has a $500 collision deductible and your vehicle sustains $5,000 in damage from an accident, you would pay the first $500. Your insurance company would cover the remaining $4,500.
Deductibles can vary based on the coverage type:
- Collision deductible—applies when your car is damaged in an accident, regardless of fault;
- Comprehensive deductible—applies when your vehicle is damaged by something other than a collision (e.g., theft, vandalism, or weather events); and
- PIP deductible—applies to your medical expenses in a no-fault state like New Jersey.
Choosing a higher deductible typically lowers your monthly insurance premium. A lower deductible means you’ll pay less if you ever need to file a claim, but your monthly payments will likely be higher.
Who Pays the Deductible in a Car Accident in New Jersey?
In New Jersey, the answer depends largely on who was at fault, what type of insurance coverage you carry, and whether you’re making a claim through your insurance or the other driver’s.
Let’s break it down.
If You Were at Fault
If you were at fault for the accident and using your collision coverage to repair your car, you will almost always be responsible for paying your deductible. Your insurer pays the rest of the repair bill after the deductible is met.
If the Other Driver Was at Fault
If someone else caused the accident and you’re filing a claim through your own insurance, you may still have to pay the deductible up front. However, your insurer may attempt to recover that money from the at-fault driver’s insurance through a process called subrogation. If successful, they may reimburse you for the deductible.
Do You Pay a Deductible If Not at Fault?
It might seem unfair, but you may still have to pay a deductible even if you weren’t at fault for a car accident.
New Jersey’s no-fault insurance system requires drivers to carry personal injury protection (PIP) coverage. Under this system, your insurance pays for your medical expenses after an accident, regardless of who caused it. With this system, you pay your deductible upfront.
The same applies to vehicle damage. If you use your collision coverage to repair your car, you’ll likely have to pay your deductible first and then seek reimbursement later if the other driver was at fault.
Paying the deductible can feel like salt in the wound if you’re not at fault. Fortunately, with legal help, you may be able to recover that cost through subrogation. An experienced New Jersey car accident lawyer can help ensure you don’t foot the bill for someone else’s mistake.
Do You Get Your Deductible Back If You’re Not at Fault?
If you had to pay a deductible after a car accident that wasn’t your fault, you may be able to get that money back. This process is called subrogation.
Subrogation is when your insurance company pays for your damages and then pursues repayment from the at-fault driver’s insurance company. This repayment includes the deductible you paid out-of-pocket.
For example, let’s say you were rear-ended and your insurance covered the cost of repairs under your collision policy. You paid a $1,000 deductible. If the other driver was clearly at fault, your insurance company may file a subrogation claim with that driver’s insurer to recover the total amount they paid and your $1,000.
If the subrogation is successful and the at-fault driver’s insurance accepts liability, you’ll typically be reimbursed for your deductible. However, the timeline for reimbursement can vary.
How a New Jersey Car Accident Lawyer Can Help
Paying a deductible or getting reimbursed for it can be frustrating, especially if the accident wasn’t your fault. A New Jersey car accident lawyer can help protect your rights, deal with insurers, and fight for you to recover every dollar you’re owed. Here’s how they can assist.
Investigating Fault and Gathering Evidence
Fault must be established to determine who pays the deductible in an accident. An experienced lawyer can thoroughly investigate and build a strong case on your behalf. This investigation may include:
- Reviewing the police report,
- Interviewing witnesses,
- Analyzing crash scene photos and surveillance footage, and
- Consulting accident reconstruction experts.
The stronger the evidence of the other driver’s fault, the more likely your insurance company or theirs will reimburse your deductible.
Calculating Full Damages
Insurance companies often focus on immediate medical bills and car repairs, but a skilled attorney looks beyond the surface.
Damages may include:
- Medical expenses (emergency care, surgeries, physical therapy, medications);
- Missed income;
- Loss of future earning capacity;
- Out-of-pocket costs related to transportation or home modifications;
- Property damage (vehicle repair or replacement);
- Pain and suffering; and
- Emotional distress and reduced quality of life.
Calculating damages also involves timing. Your attorney will likely advise waiting until you reach maximum medical improvement (MMI)—the point at which your condition has stabilized—so that future medical needs can be properly accounted for.
By accurately calculating your damages and supporting them with strong evidence, your attorney can pursue a settlement or verdict that truly reflects what you’ve lost.
Handling Insurance Company Communications
Dealing with insurance adjusters can be intimidating, especially when recovering from injuries. Insurance companies may downplay liability, delay payment, or deny your reimbursement. Your lawyer will handle all communications to help:
- Prevent you from making statements that could hurt your claim;
- Push back against lowball offers or denials; and
- Meet deadlines and submit all paperwork correctly.
They act as a buffer so you can focus on healing while they work to protect your rights.
Pursuing Subrogation or Filing a Lawsuit
If your insurance company has not initiated subrogation or the process stalls, a lawyer can take legal steps to push the matter forward. These legal steps may involve further negotiations, filing a third-party claim against the at-fault driver’s insurer, or initiating a lawsuit against the responsible party if other methods fail.
An experienced attorney can help hold the insurance company accountable and help ensure your claim is handled correctly.
Helping You Understand Policy Language
Insurance policies are full of fine print and confusing language. An attorney will review your coverage and explain your options, including:
- Whether your policy requires you to pay a deductible upfront;
- If you’re entitled to deductible reimbursement; and
- How your collision, liability, or uninsured motorist coverage applies.
This knowledge empowers you to make informed decisions and avoid getting taken advantage of.
Don’t Let Insurance Confusion Cost You
Dealing with insurance companies after a car accident can be overwhelming, especially when you’re wondering if you have to pay a deductible if someone hits you or if you get your deductible back if you’re not at fault. Between dense policy language, shifting blame, and delays in reimbursement, many people end up paying out of pocket for an accident that wasn’t their fault.
Don’t let that happen to you.
At Glugeth & Pierguidi, P.C., we help New Jersey car accident victims cut through the confusion and get the compensation they deserve. With decades of courtroom experience and a track record of recovering millions on behalf of our clients, we know how to deal with insurance companies that try to avoid responsibility. Unlike firms that pass you off to a junior associate, our founding attorneys—Jared Glugeth and David Pierguidi—work directly with every client. You’ll always have an experienced advocate by your side.
Whether you need help recovering your deductible or pursuing a personal injury claim, we’re here to fight for you. We understand New Jersey’s complex insurance laws and know how to hold insurers accountable.
Contact Glugeth & Pierguidi, P.C., today for a free consultation. There’s no cost to speak with us. And, we don’t charge any legal fees unless we win your case.
David Pierguidi and Jared Glugeth understand how hard it may be for you and your family following an accident resulting from someone’s negligent actions. Get the medical treatment you need right away and then call our law firm at any time of day for answers to your questions.
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