Derek
June 5, 2026
Not at fault but stuck paying your deductible? You can get it back. Learn the three ways to recover a not-at-fault accident deductible—first-party claims with subrogation, third-party claims, and reimbursement plans—plus exactly what to do at the scene to speed up your refund.
Written by Mark Lopez
The accident happened because of someone else’s fault. It's stated in the police report. It was witnessed by several people. But it is you who have to pay the body shop $1,000 for repairs to your car. Something doesn’t look quite right about it, does it? Do you need help to get that money back? The answer to your question is yes; you can get a deductible back. But how do we do that?
According to American Family Insurance, if both parties cooperate, you could receive a refund of your deductible within 1 to 2 weeks. The average case takes about six months. A 2024 Federal Reserve survey found 37% of Americans couldn't cover a $400 emergency with cash. Paying a $1,000 deductible for someone else's mistake is frustrating. For many families, it's a genuine financial hardship.
This guideline outlines exactly why you need to pay the deductible even though the accident is not your fault, the three ways that you can get it back, what you should do on the scene, and how to safeguard your finances until then.
Why Do You Have to Pay a Deductible Even Though You Are Not at Fault?
3 Ways To Get a Not-at-Fault Accident Deductible Reimbursement
Steps for Getting Your Accident Deductible Refund: What To Do On the Scene
Step by Step: Speed, Risks, and Control Points
Exceptions: Hit and Run Driver, Uninsured Motorist, No Fault State
Three Tips For Recovering a Not-at-Fault Deductible Reimbursement
How PillowPays Can Help
Key Insights
FAQs
Sources & References
You might feel frustrated by this question: "It's not my fault. Why should I have to pay my deductible?" You're not alone—many people share this concern, and it’s completely understandable.
It lies in the structure of your coverage and the agreement that you made with your insurance company. The deductible is included in your contractual obligation with your insurance company, not with the other driver. If you submit a first-party claim against your insurance company, you must pay your deductible first.
Your insurer doesn't know who's at fault when you file the claim. The investigation hasn't happened yet. The police report might take weeks. The other driver's insurance company hasn't accepted liability. So your insurer processes your claim under your policy terms, which means deductible first, coverage second.
The refund comes later, through a process called subrogation, where your insurer pursues the at-fault driver's insurer to recover what it paid, including your deductible. For a full explanation of how deductible reimbursement works, see What Is Deductible Reimbursement? A Guide to Financial Safety.
You have three distinct options for recovering your deductible. Each has different speed, risk, and control dynamics.
File a collision claim with your own insurance. Pay the deductible. Get your car fixed immediately. Your insurer investigates fault, sends a demand to the at-fault driver's insurer, and, if subrogation succeeds, refunds your deductible.
Speed to get your car fixed: fast (days)
Speed to get deductible back: slow (1 to 2 weeks best case, 6 months average, 1 to 2 years worst case)
Risk: low for car repair, moderate for deductible recovery (depends on fault determination)
Don’t use your own insurance at all; just file the claim directly under the liable party’s liability policy. If he takes the blame for what happened, he will have to pay the full cost of repairs, and you will not have to pay any deductibles.
Time to get your car repaired: Slow (because you must wait until their investigation and approval are done)
Time to recover the deductible: N/A (no deductible because they will cover it)
Risks: Higher (disputing liability, delaying investigation, or underestimating the repairs)
File with your own insurer (Path 1), pay the deductible, and simultaneously submit for reimbursement through a membership plan. Get your deductible back in days, not months. Meanwhile, subrogation runs in the background. For more on how different insurers handle this, see Best Auto Insurers for Deductible Reimbursement.
Speed to get your car fixed: fast (days)
Speed to get deductible back: fast (days)
Risk: none for deductible recovery (not fault-dependent)
Whatever you do in the first 30 minutes following an at-fault accident will determine whether or not you can recover your deductible quickly. The process goes like this:
An accident report is essential, even in minor accidents, as it establishes culpability. Without a report, the at-fault party’s insurance may argue that its client is not responsible.
Photos of all vehicles (including every angle, close-up of damage, license plate numbers), the intersection or road, traffic lights, skid marks, debris, and any injuries visible at the scene. Video evidence is even more effective.
Get the following information from the other driver: his name, contact number, insurance details, and his driver’s license number. Take down his insurance card, take photos of it, and collect witness details if any.
There is no need to wait for the other party’s insurance company to accept fault. Make an immediate claim under your collision insurance policy. This will have your car repaired instantly; all you need to do is pay the deductible, which the insurer will recoup through subrogation.
Contact the other motorist's insurance company to report the accident and open a third-party claim. You may proceed with both approaches simultaneously.
"Those families that cope well with financial difficulties are those that record every detail at the scene and make claims with their own insurance companies first," states Linda Park, Certified Financial Planner from Horizon Wealth Advisors. "It is important to act quickly because the sooner you make your claim, the sooner it will be ascertained and the process of subrogation starts."
Factor | Path 1: Your Insurer | Path 2: Their Insurer | Path 3: Reimbursement Plan |
Car repaired | Days | Weeks to months | Days |
Deductible paid? | Yes, upfront | No (if accepted) | Yes, upfront |
Deductible back | Weeks to months | N/A | Days |
You control process? | Partially | No | Yes |
Fault matters? | For refund amount | For acceptance | No |
Works if uninsured? | Via UM coverage | No | Yes |
Monthly cost | $0 | $0 | $10 to $30 |
The best route is Path 1: file a claim with your insurance company so your car can be fixed right away. For those in Path 3 with a reimbursement plan, file the claim that very day to receive your deductible back. Subrogation can work behind the scenes to get the responsible party’s insurer to pay up.
In cases where the driver who caused the accident fled the scene, there isn’t anyone for the insurance company to pursue through subrogation. The claim would be filed using your own insurance company’s cover (collision or uninsured motorist cover). The deductible has to be paid by you. A subrogation claim will be very difficult unless the driver can be found.
According to the Insurance Information Institute, about 14% of drivers nationwide are uninsured. If the at-fault driver has no insurance, your uninsured motorist property damage coverage (UMPD) may cover the repair, but you still pay the deductible. Subrogation against an individual (rather than an insurance company) has a very low success rate. For homeowners-specific strategies, see Best Homeowners Insurance for Deductible Reimbursement.
There are 12 No-Fault States, which include Florida, Michigan, New York, New Jersey, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah, where your own insurance pays for your medical bills even if you were not at fault for the incident. Property damage, however, will still be treated under traditional fault principles in most of these states. You will still be responsible for paying the collision deductible and seeking reimbursement through subrogation.
"Perhaps one of the best steps families can take is to look at their deductible as a predictable expense and not a surprise," according to Robert Delgado, Independent Insurance Agent and NAIFA member. "During not-at-fault accidents, there is no doubt about the emotional frustration that may come from being forced to pay for someone else's fault. However, if there is a plan for that deductible, then there will be zero dollars out of pocket."
The police report will be the best evidence. In its absence, the other party may claim that it is not responsible for the damage caused. This will make your case one of “he said, she said.” Although the police may tell you that they do not attend to such small property damage claims, get a report made at the station anyway.
Take your claim through your own insurance company (Route 1) for quick repairs. Take your claim through the other party's insurance company (Route 2) as an additional measure. You can choose not to go after the other party if he is paying off first because your own company does not have to subrogate, and you will avoid any deductible.
The greatest drawback to the process of claiming the other driver is at fault for getting back your deductible is the wait. Weeks, months, even more than a year. While a deductible repayment program pays back your deductible within days, the subrogation process will handle the rest. For more strategies, visit the PillowPays blog.
How PillowPays Can Help When you are involved in an accident that is not at fault, PillowPays returns your deductible within days, while subrogation goes on behind the scenes for several months. You do not have to wait for the insurance company of the other motorist to pay your deductible. Nor do you need to go through any process of arbitration. Basic protection costs $10 per month and includes coverage of up to $500/year for home and car deductibles. Visit pillowpays.com to compare plans. |
Even when you're not at fault, you need to meet your deductible requirement because it is part of the deal between you and your insurance provider, not the one between you and the other party. The refund will come back through subrogation or a third-party claim after the accident.
Three ways of recovering the payment: file a claim with your insurance company (quick fixes, delayed refunds), claim directly with the at-fault driver's insurer (no deductible but more complicated), or go for a reimbursement option (quick fixes, quick refunds).
It all starts from what you do at the site of the accident: request a police report, take pictures, exchange data, and claim through your insurance company. All this makes the process of establishing liability faster, and you get the money quicker through subrogation.
Situations like hit-and-run, uninsured driver, or living in a no-fault state complicate the issue. But there is an alternative that works irrespective of any obstacles.
The most reasonable choice would be to file a claim with your insurance company, submit a reimbursement request immediately, and let subrogation act behind the scenes as an additional avenue for recovery.
Yes, if you make a claim against yourself under your insurance. This will fall under the terms of your policy. You can recover your deductible through subrogation or by making a claim with the other party's insurer, without having to pay it.
Method #1: subrogation (your insurance company pursues the at-fault driver’s insurance company), method #2: third-party claims (you pursue the at-fault driver’s insurance company), or method #3: deductible reimbursement membership (deductible is reimbursed no matter whose fault it was).
Best scenario: one to two weeks, if all goes well (American Family Insurance). Average: six months. Worst scenario: one to two years, if going through court is necessary. The reimbursement membership gives you your refund within days.
Approximately 14 per cent of motorists lack any type of auto insurance in the country. Although your uninsured motorist policy may cover damages, you are still responsible for paying the deductible. Subrogating against an uninsured person is unlikely to succeed. Get a reimbursement program.
Absolutely. Going through your own insurance gets your car repaired promptly. Making a third-party claim against the other person's insurance creates a third-party claim. If your third-party claim is successful, you will get your deductible back, which does not require subrogation. Disclaimer
This document is for educational purposes only and does not provide any advice on insurance or the law. Fault assessment, the subrogation process, and no-fault states differ from one state to another. It is recommended that you consult an insurance specialist or lawyer.
American Family Insurance. (2026). Auto Deductible in a Not-at-Fault Accident.
Federal Reserve Board. (2025). Economic Well-Being of U.S. Households in 2024.
Insurance Information Institute (III). (2025). Understanding Your Insurance Deductibles.
Insurance Information Institute (III). (2025). 12 Ways to Lower Your Homeowners Insurance Costs.
About the Author Mark Lopez Insurtech Entrepreneur and Angel Investor, Mark Lopez, is the co-founder of Pillow Pays which is a subscription-based insurance company. As someone with experience from RBC Ventures, MasterCard Fintech, and having co-founded RedFlagDeals.com, Derek has extensive experience in subscription-based financial products, embedded insurance, and deductible protection strategies for consumers. He obtained his Bachelor of Commerce degree at Queen's University and is known to be one of Canada’s Top 40 Under 40 in tech and finance. LinkedIn: linkedin.com/in/derekszeto |