Ooh boy. You are suffering from classic “nice guy (or gal)” syndrome. That’s when someone damages your car, but comes to you in such a sorry state, that you feel too bad for him or her to stand up for yourself. It happens often, and especially to women. Depending on the situation, your kind heart may have just cost you your deductible.

Insurance companies often waive car insurance deductibles if they can recover most of their payments. The endorsement is exceptionally cheap, so anyone who has access to it usually has the endorsement. I have Waiver of Deductible on my policy, and it costs me $2 per year. At that price, there’s no reason not to have it. At the same time, being too nice could make that endorsement useless.

Waiver of Deductible endorsements do just what they say. They “waive the deductible” in certain situations. Essentially, if the insurance company can collect 50% or more of what it pays for your damages, it will waive your deductible. However, if your actions make it impossible for the insurance company to collect damages, your deductible won’t be waived.

Case in point: You were hit in the back. You didn’t call the police because the other driver said she would pay for the damage. What happens when she turns out to be a big fat liar? You go to your insurance policy. Your insurance will pay for your damages, less your deductible, unless they have enough information to go after the other driver for the damage. If you have the plate number of the at fault driver, that’s usually enough for the insurance company to track down the other driver’s insurance company and waive your deductible. If you did not get enough information to track down the other cars insurance, you are likely to lose your deductible, unless your insurance company eventually collects all the damages. Then you’ll get your deductible back as part of the damage settlement.

So, no matter how sad the other driver’s story, get their plate number and drivers’ license information, just so you have it on file. Then, you can offer them the benefit of the doubt without risking your deductible.

Although we do our best to offer you accurate and current auto insurance advice, we are not responsible for any negative consequences you may encounter after reading this advice. Insurance problems are often complex and can hinge on facts not provided in your submitted question. For this reason, you should not use this advice as a basis for any decision. We provide these answers for information purposes only, with the intention of steering you towards making your own conclusions about how to act or refrain from acting. Because we are not lawyers, no information on this site should be used as legal advice.