Deductible: Am I Eligible for Reimbursement?

Did you know that in the event of a no-fault accident to which the Direct Compensation Agreement (DCA) does not apply, you could be eligible to have your deductible reimbursed by the at-fault third party or their insurer? Depending on your insurance policy, you may need to pay a deductible when you make a claim, whether your car or home is affected. Find out more about the reimbursement process.

To get a better idea of situations where you could request reimbursement for your deductible, here are a few examples of no-fault accidents.

Car insurance deductible

On a windy day, your neighbour’s gazebo is blown away and damages your parked car. If the damage is extensive, you can file a claim with your insurer. Your insurance policy will kick in to cover the damage to your vehicle. However, you will still have to pay the deductible specified in your policy. You will be responsible for requesting reimbursement for your deductible from the gazebo owner.

Please note that you cannot claim the compensation amount already paid by your insurer from the at-fault third party. However, under your insurance policy, your rights are transferred to the insurer, which can seek to recover the compensation paid from the party at fault.

Home insurance deductible

Your apartment suffers water damage after a shoddy dishwasher installation by the tenant above you, or your house catches fire after an air conditioning company improperly installs your AC unit.

In both situations, you can file a claim with your insurer for the damage incurred. You will have to pay the deductible yourself and request reimbursement from the person or company at fault.

You also have the option of not going through your insurer and making arrangements with the third party or their insurer; that way, your insurance file won’t be affected. However, keep in mind that in accordance with ordinary rules of law in Quebec, the third party’s insurer or the third party themselves are not required to pay the replacement cost, unlike with most insurance policies. They are only required to pay the depreciated value, also known as the actual cash value. For this reason, it’s often better and quicker to file a claim with your insurer.

Reimbursement procedure

1. As soon as you discover that an incident has occurred, call your broker!
2. The claims adjuster assigned to your file will be responsible for settling your claim and compensating you based on your insurance coverage.
3. Next, they will request reimbursement for the compensation paid from the at-fault third party. However, according to the Code of Ethics of Claims Adjusters, the claims adjuster cannot request reimbursement for the deductible on your behalf, since this amount was not paid by the insurer.
4. To request reimbursement for your deductible, you will need to send a letter requesting reimbursement from the person at fault. Your claims adjuster can provide you with a sample letter and contact information for the person or company at fault. A sample letter is available from the Chambre de l’assurance de dommages (CHAD).
5. In addition to claiming reimbursement for your deductible, you can also claim any amount you paid that was not reimbursed by the insurer.

If you aren’t comfortable navigating this process yourself, you can consult a legal assistance service or a lawyer.

Whatever situation you find yourself in, the claims adjuster assigned to your file is here for you. Don’t hesitate to contact them if you have questions! Lareau is one of the few insurance brokers that provides its insureds with an internal claims department to guide them through this process. Yet another great advantage of doing business with Lareau!