Accident Claim Lawyers
InsuranceUpdated September 2026

Deductibles and excess

In plain English: a deductible is the amount you pay toward a claim on your own insurance before the insurer pays the rest. In the UK it's called an excess. If your repair costs 3,000 and your deductible is 500, the insurer usually pays 2,500.

When a deductible applies

Deductibles apply to first-party claims, meaning claims on your own policy, most often collision, comprehensive and some home or contents cover. Some North American policies also have deductibles on no-fault, PIP or medical benefits, and health insurance deductibles may come into play for accident treatment.

They don't apply when you make a third-party claim against the at-fault driver's liability insurance. That insurer is paying your losses on its customer's behalf, and you aren't its policyholder, so you shouldn't be asked to pay any deductible toward your own damages.

Getting your deductible back

If you claim on your own collision coverage for a crash someone else caused, you pay the deductible up front. Your insurer then pursues the at-fault driver's insurer for what it paid, which is called subrogation, and usually tries to recover your deductible at the same time. If it recovers in full, you should get your deductible back. If fault is shared, you may get only part of it.

  1. Ask your adjuster whether they're pursuing recovery and whether your deductible is included.
  2. Keep proof of what you paid: repair invoice or receipt.
  3. Follow up every few months. Recovery can take a long time.
Example

You're rear-ended at a junction. To get your car fixed quickly, you claim through your own collision cover and pay your deductible. Four months later, your insurer settles with the other driver's insurer on a 100% fault basis, and your deductible is refunded.

Country differences

UK: the excess often has two parts: a compulsory excess set by the insurer and a voluntary excess you choose to lower your premium. Young drivers may face higher compulsory amounts. If you weren't at fault, you can usually recover your excess from the other driver's insurer as part of your uninsured losses.

Canada: deductibles apply to collision, comprehensive and all perils cover. Under Ontario's direct compensation property damage rules, your deductible may depend on how much of the fault is yours; check your policy.

US: you choose deductibles for collision and comprehensive when you buy the policy. A higher deductible lowers the premium but costs more when you claim.

Small claims and your premium

If the damage is barely above your deductible, a claim may not be worth it, especially if you were at fault. Ask your insurer or broker how a claim would affect your renewal before deciding.

Next: collision coverage · premium · first-party claims.

Related terms

Liability CoverageLiability coverage is the part of an insurance policy that pays other people when the policyholder is legally responsible for hurting them or damaging their property.Medical Payments CoverageMedical payments coverage, often called MedPay, is an optional US car insurance coverage that pays reasonable medical costs for you and your passengers after an accident, regardless of who was at fault, up to a fairly small limit.No-Fault BenefitsNo-fault benefits are payments from your own car insurance for things like medical bills and lost wages after a crash, paid no matter who caused it.Policy LimitsA policy limit is the most an insurer will pay under a particular coverage for a single accident or claim.

General information, not legal or medical advice. Rules differ between US states, the UK and Canadian provinces, so check the law where your accident happened. How we write and check · Legal disclaimer