Subrogation and deductible recovery for auto claims
When another party is primarily at fault for your damages, State Farm may try to recover the amount of the claim paid for your loss. This is called subrogation. State Farm will try, to the extent that you're not liable for the accident, to recover all or a portion of the deductible you paid. This is called deductible recovery.
Deductible recovery FAQs
We'll attempt to promptly recover payments we've made from the party or parties responsible for your loss. The time needed for recovery varies with each claim and could take up to one year or longer.
Your claim handler will contact you if there's any additional information we need from you.
Your deductible is due to the repair shop once repairs are completed. If the other party is found to be at fault for the accident, we'll begin the deductible recovery process to reimburse you for the amount you paid for your loss.
Your deductible, if recovered, may be mailed as a check to you, or you can login for different payment options.
We work with other insurance companies on your behalf to do our best to get you back to normal. Contact your claim handler to get the specifics regarding your claim.
Auto Claims Subrogation/Deductible Refund Process –State Farm®
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State Farm® 5 note sonic logo
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State Farm.
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State Farm 5 note sonic logo and then upbeat music throughout.
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Animated graphics are used throughout. First we see a red car and a white car in a front bumper-to-bumper collision.
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Recently, you had to pay the deductible on your insurance to get your car fixed after an accident and now, you’d really like to get that money back.
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A coverage and deductible page appear and then transitions into a deductible page.
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Deductible = Risk Sharing
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Your deductible represents the amount you’ve chosen to pay in the event of an accident and it’s a form of risk sharing between you and your insurance company.
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A white car appears.
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When another party is primarily at fault for your damages,
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A State Farm agent office appears next to the white car then an arrow with a $ sign points from the car to the office.
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State Farm may try to recover the amount of the claim paid by State Farm for your loss.
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The white car disappears and is replaced by the red car. An arrow with a check above it points from the office to the red car.
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This includes some or all of your deductible from the responsible party.
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The previous images are replaced by the word ‘subrogation’.
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This process is called subrogation and this process and may happen as quickly as this:
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The word subrogation is replaced by a State Farm check. Then the State Farm agent office appears next to the white car. A claim page appears between the office and the car, than an arrow points from the office to the car.
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After State Farm pays your claim, we contact the responsible party or their insurance company to present our subrogation claim.
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The claim page is replaced by a State Farm check with three dollar signs on it and an arrow from the red car points to the State Farm office.
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If there is agreement and the subrogation claim is settled, State Farm will send you some or all of your deductible. Depending on state law requirements or your policy language, the returned deductible amount may be based on: Your share of
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The previous scene is replaced by the red car.
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Liability
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liability in the accident;
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Recovery Value
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or Whether the recovery is equal to or more than your deductible amount.
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An animated ticking clock with a dollar sign replaces the previous scene.
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While we work to recover your deductible as soon as possible,
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Three calendars replace the ticking clock
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you should be aware subrogation can take several months or possibly years depending on the complexity of the loss.
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A red car and a white car appears on top of a meter that measures fault.
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For example, if there is a disagreement over who is at fault
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The cars are replaced by unbalanced scales of justice and a courthouse.
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‘Arbitration’ appears above the scale and ‘litigation’ appears over the courthouse.
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we may need to go through arbitration or litigation to resolve the dispute.
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Three circles with the images of people icons appear.
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See the Arbitration/Litigation video for details.
Arbitration is an option for most subrogation claims where a major insurance company is
involved. It’s an alternative to litigation and often resolves the claim faster.
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A white car with a question mark above it appears.
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But what if the other party doesn't have insurance?
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A State Farm office and white car appear. A claim sheet appears between the two items and an arrow connects from the office to the claim to the white car.
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Depending on the circumstances, State Farm may still pursue subrogation from the responsible party on your behalf. This process can take some time and is not always successful.
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Some things to remember
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Some things to remember about recovering your deductible:
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State Farm office.
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You always have the option to seek your deductible directly
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You always have the option to seek your deductible directly from the responsible party or that person's insurance company.
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Let State Farm® know you will be pursuing your deductible
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Let State Farm know you will be pursuing your deductible and/or any other out-of-pocket expenses or uninsured losses.
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State Farm office
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Also, be sure to let the other party know you do not represent the interests of State Farm
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Also, be sure to let the other party know you do not represent the interests of State Farm in any release you sign.
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State Farm office and claim sheet
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State Farm can only attempt to recover your deductible if State Farm has paid for a covered loss. The subrogation process gives State Farm the opportunity to
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A red car with a $ sign above it appears
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recover your claim payment so we can keep insurance costs lower for you.
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State Farm 9 note sonic logo
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State Farm logo
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State Farm. Like a good neighbor, State Farm is there.
Deductible Process: Arbitration and Litigation
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State Farm® 5 note sonic logo
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State Farm.
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State Farm 5 note sonic logo and then upbeat music throughout
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Iconic image of a person and a State Farm office appears. An arrow with a $ sign above it connects from the person to the office.
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State Farm is pursuing subrogation, and you were notified that your claim is going to arbitration or litigation. Here is what you can expect.
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The previous images are replaced by unbalanced scales of justice and a courthouse.
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‘Arbitration’ appears above the scale and ‘litigation’ appears over the courthouse.
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When there is disagreement over who caused the loss in a subrogation claim, we may need to go through arbitration or litigation to resolve the dispute.
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Three circles with the images of people icons appear.
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See the Arbitration/Litigation video for details
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Arbitration is an option for most subrogation claims where a major insurance company is involved. It’s an alternative to litigation and often resolves the claim faster.
In arbitration, each company prepares and submits its case to an impartial arbitrator who renders a decision based on evidence such as a
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Icon of police report, photo, paper statement appear over the scales of justice and courthouse
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police report, photos of the vehicles and statements from the drivers.
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Icon of person and paper claim superimposed over the scales and courthouse images.
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However, the claim could proceed through litigation which will involve retaining an attorney to represent State Farm as we pursue our subrogation claim through the court system. This
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Three calendars are superimposed over the scales of justice and courthouse
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process can take a year or two or more, depending on the jurisdiction.
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Gavel superimpose over scales and courthouse.
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The outcome of the arbitration or litigation may determine your deductible refund. If the arbitrator decides 100% in our favor,
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A house with a State Farm check above it appears
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and the amount awarded exceeds your deductible amount, State Farm will refund your full deductible. If the amount awarded is less than your deductible, you will receive the entire amount awarded.
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Gavel and policy page
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State Law and Policy
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In some states, if you are determined to be partially at fault, your deductible refund is contingent on both state law and your policy language. Although arbitration is quicker than litigation,
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Three calendars superimposed over scales of justice
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this process can take up to 6 months or more depending on the jurisdiction and type of claim.
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Things to remember
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Some things to remember about recovering your deductible:
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State Farm office
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You always have the option to seek your deductible directly
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You always have the option to seek your deductible directly from the responsible party or that person's insurance company.
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Let State Farm® know you will be pursuing your deductible
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Let State Farm® know you will be pursuing your deductible