if you have full auto coverage....?

Question

this is my first wreck and it might be my fault once it's taken to arbritration. i have full coverage on my auto insurance. the other party has full coverage insurance. What is the most i will have to pay for my deductible? How much will my insurance go up? Also will i have to pay for additional out of pocket expenses other than my deductible?

Answer 1

"Full Coverage" is a loaded term depending on the state you reside in. Go to the state website.gov and research the insurance section to find out the exact answers you are looking for if you are afraid to ask your agent. I am from Michigan and we have the most confusing auto laws in the country, so I won't even begin. I will tell you in general that you will owe your deductible for the collision that is listed on the declaration page. Since the other party had "full coverage" their insurance will subrogate against your insurance company for the damages to their insured's vehicle including the deductible the other person has on the policy and the loss will count against your "loss history." Depending on the company you are insured with and how long you have been a customer will decide what happens to your rates normally in my experience as an agent the past ten years. Each company is different in handling their rate increases for losses and each state varies as well. Our claims department is national, the first question asked is which state are you calling from so they know what guidelines to use. Some companies do not raise your rates, others increase it 40% at renewal, you will have to wait and see how you are treated at the next renewal date and maybe get a few quotes in the mean time to be prepared. You should not have any additional out of pocket expenses other than your deductible. There is no deductible on liability and you will be covered personally for any lawsuits or claims arising from the accident up to the full amount of the liability limit on the policy.

Answer 2

Deductibles apply only to Collision and Comprehensive coverage - not liability coverage. When you took out your policy - you choose a deductible. Most deductibles are $250.00 or $500.00 - however, some people do choose a $1000.00 deductible.

In essence, when you chose your deductible, you agreed to pay for the first $500.00 (or what ever amount you chose) toward the repairs of your vehicle if your insurance company would pay for the rest.

Depending on the nature of the damage to your vehicle, you could pay a small amount above the deductible for the repairs - in the form of betterment.

Betterment is applied to the replacement of parts that wear out and have to be replaced in the normal wear of a vehicle. For example, a tire on your vehicle was damaged and will have to be replaced. Before the damage, you had been able to get about 40,000 miles out of a 65,000 mile tire (or about 61%). Therefore, the insurance company owes you for the wear you were not able to get out of the tire (25,000 miles or about 39%). The repair estimate will have a line showing if betterment was applied and how much.

The insurance company will take the estimate to repair your vehicle - subtract your deductible and any betterment and that is the amount they will pay you. You would pay the deductible and betterment to the repair facility.

Also, deductibles on auto policies are not like health insurance deductibles in that you just don't meet it once for the year . The deductible on an auto policy applies per occurance- that means if you have another wreck next week - the deductible will apply to that loss as well.

If your vehicle is a total loss, your insurance company will pay the actual cash value of the vehicle. This takes into consideration the model, features, condition, mileage of your specific vehicle. If your vehicle is older, it may cost more to replace your vehicle than the vehicles actual cash value.

If you did not purchase rental reimbursement coverage and need a rental while yours is in the shop, you would have to pay out of pocket for that.

Tow charges from the scene to a tow yard or body shop in the local area are covered under the coll/comp and you will usually find these noted on the estimate as well. If you want to tow the vehicle a long distance (such as across state lines) your insurance company will probably contribute some to that but would not owe to foot the entire bill. (If you have a wreck in Florida and live in Ga, they don't owe to tow the car all the way back to Ga so you can get it fixed there.)

Any time you have a wreck and you are deemed at least partially at fault for it - there is a chance your insurance will go up. However, insurance rates are regulated by the insurance department of each individual state. Therefore, rates vary from state to state. Your best bet there is to speak to your agent. He/She may be able to give you some guidance regarding how the claim will affect your rates.

Answer 3

Your deductible amount will be whatever your policy says it is. Look at your policy or a recent bill, it should say. Since you can buy policies with various deductibles, nobody here can tell you what you have. You shouldn't have additional expenses if you get your car repaired. If you have to replace it, it's hard to tell whether you'll be able to find a replacement car for what the insurance pays.

Your insurance might or might not go up, and there's no way for anyone here to tell that either.