THURSDAY, AUGUST 28, 2014
This is a true story- the following freak accidents really happened to a friend of mine.
She was driving down the highway, and someone in the car in front of her threw a bottle out of the window and it landed on my friend's windshield, then bounced onto the hood.
And then, not 15 minutes later, she was driving down the same road, and a deer decided to play "chicken" with her car. Of course, she hit it dead on.
It wasn't the accidents that made her the most upset though- it's what happened during the claim
I attempted to explain how claims like these work, but she didn't like my explanation. And I understand why she was mad. So before you have a similar situation, I'm going to give you the basics of how a claim like this works. So,although you might still be upset, you'll at least have an understanding of why. And no, I don't insure her, but it doesn't matter- the answer is universal. It makes no difference who the insurance company is. The response will be the same.
How an Insurance Company handles a claim like this
First- both the bottle landing on the car and the deer hit are classified as comprehensive losses. So if you don't have comprehensive coverage on your car, you're out of luck.
She had comprehensive coverage. Comprehensive coverage usually has a deductible associated with it. Let's say for this example it was $500.
So normally, the insurance company sends you a check for the repair estimate minus the deductible.
Sound pretty typical so far?
But in this case, there wasn't just ONE loss. There were TWO.
You see, the deductible applies "Per Accident." And guess what? An accident is a specific event that happens at a specific date & time.
So, UNLESS the deer threw the bottle at the car the same time he crashed into it, it's two separate accidents.
Why? Because they didn't happen at the same time.
So, can a car insurance policy charge me two deductibles to fix my car?
If you have a situation like above, absolutely Yes.
Yes, it sucks. Yes, it's unfair. And I wouldn't like it either. But, this is what the policy says. And the policy determines how claims are paid.
So this is also a great opportunity to mention that while having high deductibles does help reduce your premium, your deductibles can be TOO high. Just think having to shell out $1,000 when you were anticipating $500. Big difference isn't it? Also the premium difference between $500 and $1,000 deductibles is very small. And often not worth it.
Does this make more sense now? Again, I don't expect you to like it, but I do want you to understand it.
Does your insurance agent answer your questions? And in terms you understand? If not, then contact us today. We'd love to help you! You can also request your quote here.
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