If you are in a car accident and you were not the one who caused it, then you probably want to figure out how to get payment for your damages as soon as possible. Who pays for your damages may differ in every situation. It often depends on who moves the quickest and the types of insurance coverage you and the other party have.
According to the California Department of Insurance, in some cases, your insurance company may pay for your damage upfront. Your insurer may then collect payment for these expenses from the at-fault party or his or her insurer. This is a process known as subrogation.
When your insurer pays
If your insurer handles the damage expenses, then you will probably have to pay your deductible. This can create issues. If your insurer will use subrogation, then you can have the insurer include your deductible so that you can get that money back. If your insurer does not do subrogation, you can try to claim your deductible from the other party on your own. Do note that if your insurer pursues subrogation but does not include your deductible, you cannot do anything that would put your insurer’s ability to get its money in jeopardy when trying to collect your deductible from the other party.
The other party or his or her insurer may try to offer you a settlement quickly after the accident. These offers are usually quite low. You should not accept an offer without seeking advisement on what your true costs are or may be from the accident.