How Reimbursement Amounts Are Calculated

Dependent on the laws in your state, you may be fully reimbursed for your deductible if:

  •   The other party was 100% at fault
  •   The other party paid the damages claimed in full 
  •   There were no collection expenses (i.e. collection agency) to recover the money.

Often times though, it is not that simple.  Based on the different factors that come into play, the calculation of the reimbursement amount can become quite complicated. The reimbursement of your deductible depends on several factors, including the amount recovered, the amount claimed (based on the amount the various parties were at fault), and state laws.

Generally, you would receive reimbursement of your deductible equal to your proportion of the total amount claimed to the total amount recovered, net of expenses. However, precisely how the reimbursement amount is determined varies by state.

The following examples outline general rules that apply in many states—please discuss the specifics of your case with your subrogation claim representative.
Example 1: Other party is 100% liable, but only paid part of the amoun

The total amount of damages paid is $1000. The other party was 100% responsible for the damages. Subrogation claim is for $1000.

You paid $100.
Your insurance company paid $900.
Your proportion is 1/10 or 10% of the total amount claimed, or $100.

The amount actually collected is $500. There were no collection expenses.

You are reimbursed for $50, or 1/10 (10%) of the amount collected.
Your insurance company is reimbursed for $450. 
Example 2: Other party is partially liable; only paid part of the amou

The total amount of damages paid is $1000. The other party was 60% responsible for the damages. Subrogation claim is for $600.

You paid $100.
Your insurance company paid $900.
Your proportion is 1/10 or 10% of the total amount claimed, or $60.

The amount actually collected is $300. There were no collection expenses.

You are reimbursed for $30, or 1/10 (10%) of the amount collected.
Your insurance company is reimbursed for $270. 
Example 3: Other party is 100% liable, full amount recovered, but with

The total amount of damages paid is $1000. The other party was 100% responsible for the damages. Subrogation claim is for $1000.

You paid $100.
Your insurance company paid $900.
Your proportion is 1/10 or 10% of the total amount claimed, or $100.

The amount actually collected is $1000, but a collection agency was used to collect the money from an uninsured driver. After the collection agency fees of 25%, the amount recovered was $750.

You are reimbursed for $75, or 1/10 (10%) of the amount collected.
Your insurance company is reimbursed for $675.