are auto insurance deductibles reimbursable
This amount becomes your insurance deductible. It’s what you owe if your car gets damaged in an accident or storm (or another situation covered by Comprehensive and Collision); after you pay that, Progressive covers the rest. A Survey of Laws Regarding Reimbursement of an Insured’s Deductible in all 50 States. Most automobile insurance policies require their insured to pay a deductible when a claim is made. In the world of subrogation, the issue of how much of an insured’s deductible must be reimbursed to the insured after a carrier makes a successful subrogation recovery, remains a perplexing and confusing issue for subrogation professionals. It’s important to choose an amount you can afford to pay if you have an accident—otherwise, you won’t be covered. However, when you agree to shoulder a little more of your accident expenses, you’ll lower your rate. It’s like your car insurance deductible and car insurance rate are on a seesaw. If you start with a $200 comprehensive and collision deductible, raising it to $500 could lower your coverage cost by 15 to 30 percent according to the Insurance Information Institute. Raising this auto insurance deductible even more, to $1,000, can save you upwards of 40 percent. Deductible Car and Truck Expenses. Ordinarily, expenses related to use of a car, van, pickup or panel truck for business can be deducted as transportation expenses. Use of larger vehicles, such as tractor-trailers, is treated differently and is not part of this discussion. In that case, fire damaged the insured’s property, and their insurance policy provided for full replacement costs, subject to a $500 deductible. The carrier subrogated against the tortfeasor, but was able to recover only the depreciated value of the property. However, the Texas Department of Insurance (TDI) indicates that the reimbursement of the insurance deductible in a third-party claim is usually dictated by the level of recovery – usually a pro-rata reimbursement based on the percentage of recovery. In an effort to educate taxpayers regarding their obligation to file accurate tax returns, this fact sheet, the fifth in a series, explains the rules for deducting car and truck expenses. Ordinarily, expenses related to use of a car, van, pickup or panel truck for business can be deducted as transportation expenses. Use of larger vehicles, such as tractor-trailers, is treated differently and is not part of this discussion. Traveling from one work location to another within the taxpayer’s tax home area. If the auto carrier is successful in subrogating a particular loss against a third party and makes a recovery of its claim payments, the issue often comes up as to what portion, if any, of the insured’s deductible must or should be reimbursed to the insured. Only the business use percentage of each expense is deductible. For example, if, based on records maintained by a taxpayer, total actual vehicle expenses for a given year are $2,500 and the vehicle is used 75 percent for business, the allowable deduction using the actual expense method is $1,875 ($2,500 x 75 percent).
Yes