Why wasn't my car insurance company able to recover my deductible from an at-fault driver?

"I was in an accident with two other vehicles. I had to go to the hospital, and my insurance paid for my medical expenses and vehicle damage.

But my car insurance company just let me know that they were unable to recover my deductible via subrogation. Is there a reason why? Will I be refunded?"

Answer
“The purpose of subrogation is for car insurance companies to recover what they paid out from an at-fault party. However, if fault isn’t able to be determined or if coverage limits have been exhausted, an insurance company may not be able to recover the money.
Since there were two other parties involved in the accident, the adjusters may be having difficulty verifying who was at fault in the accident. Until this is determined, no insurance company is able to recover their money.
If they have determined liability, it could be that the liable party has exceeded their insurance policy limits.
If an at-fault party has low coverage limits, they likely aren’t able to cover all the damages and injuries in a multiple-vehicle accident. Your insurance company might have gotten all that they could from the insured, but not enough to refund your deductible on top of other costs.
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Emily Maracle
Answered on May 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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