Though if you asked a classic car underwriter you might learn that most of their total losses arise from garage fires rather than motor vehicle accidents.
Expert??? I disclaim that one. But, I did learn a lot in my 50 year career. Auto cover far from my favorite ,
- We tend to forget that two areas of law are involved in most auto claims. Tort and contract.
A. Collision cover is pure contract. I’ve never heard of any form of this that was only triggered if the insured was not at fault.
B. The liability inuring agreements are “protection” against the 'tort" claims of others.
C. In contract, the “valuation” can be ACV, Agreed value or stated amount. The insured gets paid on the one in the policy, less deductible as described.
D. The "collison carrier becomes subrogated to the claim once payment has been made.
And, will seek reimbursement from the “tort feasor”, usually through the other parties insurer . Having made payment is essential. Gotta “own” the claim!!
E. Here comes the rub. Not to most insurors, though, merely to the public’s understanding.
It matters not as to the “different” valuations in the collision policy! ACV is the law of the land in tort. And that is all the Collision carrier is entitled to recover.
F. So, if one has the collision cover with the “different valuations” and is not at fault in an accident, It is simple math to choose to be paid in contract. Deductible amount notwithstanding. If the collision carrier is successful in subrogation, they will collect ACV . How rto “share” the deductible? Usually a non issue, the insured gets paid…
G. Read the policy. As stated, at times not that easy… But, there was a time that it was even more complex. “pain language” policies replaced those written in “legaleze”.
H. Ditto on pictures and documentation. Rarely, if ever too much…
I. The “big” bucks are not usually seen in auto. 100K no big deal. It is only money in the eyes of the professionals. Just need documents to support the payment, whatever it is…
Carl
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