Do I have to pay out of pocket if I'm fully at fault in a rear-end collision and go through insurance?
4 Answers
When you are fully at fault in a rear-end collision, you should immediately contact your insurance company, which will then be responsible for the compensation. The amount covered by commercial insurance depends on the type and coverage of the insurance policy. If the other party's losses exceed the insurance payout after the rear-end collision, the shortfall must be borne by the at-fault party, meaning you will need to pay out of pocket. Tips to prevent rear-end collisions: 1. Maintain a safe distance: Generally, a certain safe distance should be kept between two vehicles. Without a safe distance, the driver loses reaction time, and even the best vehicle braking system becomes ineffective. To prevent rear-end collisions, maintaining sufficient distance is key. A simple and practical standard for safe distance in urban driving is to leave as many meters in front of your car as the speed in kilometers per hour you are currently driving. Novices and those with slower reactions should leave even more distance. 2. Keep a clear line of sight: Maintain good visibility while driving to assess road conditions promptly. During traffic jams, due to the short distance between cars and limited visibility, misjudging the situation of the car in front can easily lead to a rear-end collision. In such cases, use the staggered line of sight method: in traffic, avoid driving directly behind the car in front; instead, slightly offset to the left or right at an appropriate distance (without crossing or straddling lane markings). This makes it easier to observe the movements of the vehicle ahead and reduces the risk of a rear-end collision.
Last time I was fully at fault in a rear-end collision and went through insurance. In the end, I didn’t have to pay for the repair costs, but I ended up losing out on the vehicle depreciation fee for the other party. The insurance company said that the car damage insurance only covers the repair part, and the other party’s car, which was only three months old, demanded depreciation compensation. When negotiations failed, I had to pay 8,000 out of pocket. Then there was the issue of advance medical payments—the 18,000 covered by compulsory traffic insurance wasn’t enough, so I advanced 20,000 for emergency deposit, and it took three months for the claim to be reimbursed. The worst part was the lost wages compensation—the insurance company paid based on the minimum standard and refused to acknowledge the other party’s monthly salary of 30,000 with provided bank statements, so I had to cover the difference with two months’ salary. My advice: when fully at fault, immediately demand the insurance company step in to negotiate compensation—private agreements are full of pitfalls.
After being fully at fault in a rear-end collision, I directly contacted my insurance company. The claims adjuster arrived and said that as long as the commercial insurance isn't involved, it won't affect next year's premiums. However, there's a hidden catch in the claims process: there's a 20% absolute deductible rate for my own car's repairs, meaning I have to pay 1,000 out of a 5,000 repair bill. It gets even more troublesome if you hit a luxury car. For example, a friend once damaged a Maybach headlight, with a single light quoted at 120,000, exceeding the third-party liability insurance limit and requiring out-of-pocket payment. You also need to be wary of the other party trying to exploit the situation by demanding excessive compensation for lost wages. There was a case where someone was asked for 100,000, but the court only awarded 8,000. It's advisable to keep the traffic police accident report and all repair invoices, and not to sign any waiver agreement before the insurance payout.
As a decade-long claims specialist, I can definitively state that compulsory traffic insurance covers ¥2,000 for the other party's property damage in at-fault accidents. However, actual scratch repairs often exceed this amount. Commercial third-party liability insurance covers the excess, but crucially check if you've purchased the 'non-deductible' rider! Without it, you'll bear 20% of the claim amount. Your own vehicle repairs require collision insurance, but note: total loss claims pay depreciated value - a ¥150,000 car bought five years ago might only fetch ¥50,000 now. If the other party demands 4S dealership repairs (typically triple independent shop costs), insurers often reject the price difference. Remember: file claims within 72 hours or face denial.
