Supreme Court rules insured drivers can claim deductible from at-fault third parties

The Supreme Court ruled May 14 that drivers involved in accidents with shared fault retain the right to claim their insurance deductible directly from the at-fault third party. The decision clarifies the scope of subrogation when insurers use a pre-payment method to settle vehicle damage claims.

When an insurer pays repair costs minus the deductible upfront, its subrogation rights are limited to the amount actually disbursed adjusted by the third party's fault ratio. The portion corresponding to the deductible remains a valid claim for the policyholder to pursue against the responsible party based on their share of fault.

This applies even if the insurer has already recovered the proportional deductible amount from the third party's own insurance provider. Absent special circumstances, the insured driver maintains full entitlement to seek the remaining balance directly from the liable individual.

The judgment was delivered in civil damages case 2023Da228244, citing provisions from the Commercial Act and the Civil Act.