Direct Auto Insurance Quote and Collision Insurance

Find Cheapest Direct Auto Insurance Quote

Can you collect the amount deducted from your collision loss? When you settle your collision claim, you assign to your company all rights of recovery against anyone who caused damage to your car. Such assignment comes from what is known as the “subrogation” agreement in your policy. Get direct auto insurance quote today!

Subrogation means that the company steps into your shoes and has the right to collect damages from the “other fellow.” The assignment is made with the understanding that if your company recovers from the responsible party, you will receive a portion of the proceeds. Usually you receive that proportion which your deductible bears to the total amount of the loss.

Example
Mike rams the parked car of Sam. Mike says he has no liability insurance and no money to pay for the $200 damage. Sam wisely settles with his collision company. He has a $50 deductible policy and has to pay this amount himself. The company pays him $150.

Comment
Sam’s collision company will be subrogated to his rights. Suppose the company were to recover $100. Sam would be entitled to the portion of the $100 that his $50 bears to the total loss of $200- 50:200 — 25:100
He would get $25 of the $50 he paid out.

The insurance companies are entitled to deduct attorneys’ fees and other expenses incurred in effecting the recovery, before reimbursing the insured.

Direct Auto Insurance Quote with Convertible Collision

Collision insurance purchased in “convertible” form has no deductible—it is full direct auto insurance quote coverage. You pay about one-half the cost of a straight no-deductible policy. Upon the occurrence of the first loss for which payment is sought, the insured pays an additional premium, which is about the same amount as the initial charge.

Collision claims that are covered. Most claims involve the collision of two vehicles or one vehicle with a stationary object such as a pole or tree. Such claims present no coverage problem. They are clearly collision.
Some claims are not so easily defined. What would you say about this case? Someone fell from a high building and landed on top of a car. Was the resulting damage covered by collision insurance? An Appellate Court in Missouri decided that such an accident was a “collision.”

Many claims result from the oil pan beneath a car striking an object in the road. The oil drains out, but the motorist continues on his way. Result, the engine is scored. Where does the collision damage end? Is only the cost of repairs to the oil pan covered?

You will probably find some disagreement even among insurance adjusters on this problem.
Some adjusters might contend that the burning and scoring of the motor resulted from the motorist’s failure to protect his automobile from further damage after the collision. However, it is noteworthy that the courts of Pennsylvania and Texas have ruled that such claims should be paid under collision coverage.



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