When a driver is involved in an accident, which party is responsible for paying the deductible amount?

In the context of an insurance claim following an accident, the insured party is responsible for paying the deductible amount. The deductible is the portion of a claim that the insured must pay out of pocket before insurance coverage kicks in.

This system is designed to reduce the frequency of small claims and to encourage policyholders to be more cautious, as they share in the cost of smaller losses. After an accident, when a claim is filed, the insurance company will process the claim, but the insured must first cover the deductible amount. For example, if the damage from an accident amounts to $2,000 and the insured has a deductible of $500, the insurer would pay $1,500 after the insured pays the deductible.

This responsibility clearly distinguishes the financial obligations of the insured party from that of the insurance company, which covers the costs beyond the deductible.