Auto Insurance Claims: Auto Insurance Deductible, subrogation claim, insurance company

Question
Dear Mr. Richard Hixenbaugh:

Re: Auto Insurance Deductible

My car was hit bay another car when I was backing up. My insurance company Nationwide says I can go ahead to fix it, but I have to pay $500 deductible until it is determined that it was the other driver's fault. He said ha has not been able to contact other side's insurance company. It's been many weeks already. Isn't there any time limit in law that the insurance company has to pay the deductible? They can keep telling me that it was not decided because they cannot contact the other side and keep avoiding paying the deductible. I have not repaired my car because I want to make sure I will get paid for all.

Answer
Hi Makoto,

There is no time limit for your insurance company to make contact with the other insurance company. It is possible the other insurance company will not respond until your insurance company sends then the entire claim file as part of their subrogation claim.

That means you should go ahead and get your vehicle repaired and pay your deductible to the body shop. Once everything is complete, your insurance company will send a demand for reimbursement to the other insurance company. If they are successful in getting reimbursed it will include your deductible. Your insurance company will then send you a check for your deductible. However this process can take up to a year.

I hope this helps
Richard Hixenbaugh