The basics
If your collision deductible is $500 and the approved repair is $4,000, the insurer pays $3,500 and you pay $500 — usually directly to the shop when you pick up the car.
When you don't pay a deductible
- When the other driver was at fault and you file with their insurance (a third-party claim)
- When your insurer later recovers the money from the at-fault driver's insurance (you may get it refunded)
Higher or lower deductible?
A higher deductible lowers your premium but means more out of pocket after an accident. Many drivers choose $500 or $1,000.
Deductible help and California law
California Penal Code § 551(b) makes it illegal for a repair shop to offer a discount meant to cover your deductible — except when the insurer has determined the repair amount and the repair is done according to that approved estimate. That's why honest shops are careful with "no deductible" promises.
At NewGen Auto Repair we offer deductible help of up to $1,000 on insurance claims where the insurer has approved $8,000 or more, and the repair follows that approved estimate. We never increase an estimate to cover a deductible. Ask us for details before your repair starts.
FAQ
Do I pay the deductible to the shop or the insurance company?
Usually to the shop, when you pick up your car. The insurer pays the shop the rest of the approved amount.
Is 'we pay your deductible' legal in California?
Only in a narrow situation: the insurer has determined the repair amount and the repair follows that determination (Penal Code § 551(b)). Inflating an estimate to cover a deductible is insurance fraud.
This article is general information, not legal or insurance advice. Rules and policies change — check your policy and the official source, or ask us.