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Car Insurance Question  My daughter's van (insured in New Jersey) was totaled in an accident. The insurance company is billing her for the deductible of $750. They did not repair the vehicle. Is she liable for that deductible?

If your daughter is using her own collision coverage to cover the vehicle for this covered total loss of it, then yes her deductible would be due.

With your physical damages coverage of collision and comprehensive you are liable for the deductible, or the portion of a claim that you are responsible for paying. The deductible is due whether your car is being repair or has been deemed a total loss. With a total loss she after her deductible amount is paid then her insurance carrier should settle with her for the actual cash value (ACV) of her vehicle in the condition it was in before the accident.

If your daughter was not at fault but went through her own insurer for the claim there is the possibility that her insurance company will subrogate with the at fault party's insurance company for the monies they pay out on her claim. If that is the case then your daughter should speak to her insurance adjuster to see if they will try to also subrogate for the amount of her deductible so she can be reimbursed.

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This car insurance question was asked on 9/21/2007
This auto insurance answer was last updated on 9/26/2007
Kevin requested this car insurance solution.
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