Do I have to wait for the insured of the at fault insurance company to pay their deductible before the insurance company pays me for my damages?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 30, 2011

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Insurance Question from Glen Burnie, MD

Asked on 08/30/2011

Do I have to wait for the insured of the at fault insurance company to pay their deductible before the insurance company pays me for my damages? The insurance company and I have agreed to a settlment amount, but the inurance company refuses to pay me until their insured pays them the policy deductible.

Answer given on September 03, 2011

I am presuming this is an automobile loss. If the insurance company for the other party has accepted responsibility, then your claim should not be affected by the other person’s deductible. The policy deductible applies to the other person’s damages to their car. It does not affect any property damage or injuries. I would suggest that you contact the other insurance company again and have them explain their position. If they do not change their mind, ask to speak to a supervisor, because it sounds like the adjuster in this claim does not understand how deductibles work.There are some business liability policies that have a deductible, although it is rare. If this is a business policy (not auto) then this could be the case. However, the insurance company should simply pay you the settlement, less the deductible of the insured. You would then need to get that payment from the insured. Hopefully this will be simple, but if not, you may have to take them to court to get that settlement

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