Why you should go through your own insurance
When you get in an accident that you weren’t at fault for, most people’s initial reaction is “why should I have to pay for anything?” Which admittedly is a very good point. But it is almost always more advantageous to go through your own policy if you have collision coverage.
“Why should I use my own insurance when the other person is at fault.” The simple answer is to avoid headaches. One of the biggest costs for insurance companies is acquiring new customers. Because of that, companies generally want to try and retain the customers they already have. Most companies spend a lot of time and focus on the customer experience when a claim occurs, since that is typically the only reaction a customer will have with the actual product.
What that means is that the insurance companies want to make the process as smooth as possible for you, allowing you to avoid the headache of dealing with the at fault insurance company. Some specific examples of where dealing with the at fault insurance company can be a painful experience:
Property Damage Limits Issues
Liability and/or Coverage Disputes
Unresponsive at Fault Party
“Will I have to pay anything to use my own policy?” Typically, yes. You will need to pay your deductible. The most common deductible amounts are $1000-$1500, although some policies have higher or lower deductible amounts. This is the amount that you pay your own insurance company, and they handle the rest of the repair costs.
“Does that mean I am out $1000 even though I wasn’t at fault?” Only for a period of time. The way it works is that you pay your deductible, your insurance company pays the rest of the cost of repairs, and then once the repairs are complete your insurance company will take part in what is known as subrogation. Meaning that your insurance company will put together a package showing the costs of repairs and send it to the insurance company for the at fault party and request reimbursement. This package will include a request to reimburse your deductible. Once the insurance company for the at fault party reimburses your insurance company, they will return your deductible. This process typically takes around six months from the time of the collision, so you will be out that money for that time, but it is worth it to avoid the hassle.
Pro tip: set a reminder on your calendar for six months after the incident to reach out to your insurance company if you haven’t received your deductible. While things usually run smoothly, sometimes things fall through the cracks and a follow up might be needed.
