50/50 Split Responsibility - is the Deductible Split?

[BigSteve]

It sounds like you need another agent, although 3 bad agents in a row? I am guessing that there is more to it than that, are you one of the 10% that help take up 90% of someone's time? "I imagine" how your policy works because you have not provided important details like what carrier you have. So to speculate on what your insurance contract says would be like speculating when the world is going to end. The claims rep makes the decision, the agent advises you, sounds like you've got it all figured out. So go ahead and file that $400 Claim that you MAY get paid $150 on, and then call your agent for a week straight at renewal demanding to know why your rates went up and then threatening to leave him as a client. If you want my professional opinion, here it is, you've wasted enough of your own time over $150, if you were my client you would be fired and told to find a new agent.

 

[INSUREGEEK]

According to most insurance policy collision deductible provisions, you owe the FIRST $500 of a claim.

I've never seen a deductible split because collision is a first party coverage.

I have seen an at-fault party's company pay the damaged party's collision deductible up front and then settle the rest in subrogation. That can come in handy sometimes!


Good Luck!

 

[indienoise]

Why should you have an agent? They are (or should be) intimately familiar with the carrier's underwriting guidelines. They know to ask you questions that you wouldnt know to answer dealing directly with a carrier both to further qualify you under their guidelines and save you money. Also saving you time preventing underwriting reviews and premium changes later on. And finally making sure you're really protected the way you think you are.
Any time a prospect chooses to deal directly with a carrier instead of my proposal, even if they save money, i invariably laugh at their struggles making changes or getting policy service pressing all those buttons on the automated system and sitting on hold.

Finally, yes i believe dealing with your agent on claims is a waste of everyone's time. I always give my clients the claims number. I value their time enough not to waste it. They need to give their statement to the carrier, not me. Plus it prevents misunderstandings caused by relaying information secondhand.

 

[rolox1]

Please keep in mind that no agent is an "expert" in all areas of insurance. When it comes to the pay out of a claim and/or subrogation, that is handled by the company that insures you, not your agent.

 

[JCPinCompton]

I just happened on this thread and thought I would clarify how the claims of the two parties in this case work.

Assumptions:
1. Party A has $800 damage to his vehicle, has collision coverage with a $500 deductible.
2. Party B has $0 damage to his vehicle.
3. The insurance carriers for the respective parties agree that liability is 50% for each party.

Party A has the option of pursuing a claim against Party B (in effect Party B's insurance company) or presenting a claim to his own carrier under the collision coverage.

If Party A presents a claim against Party B, Party B's insurer pays 50% of Party A's damage ($400). This is what has happened.

Party A could be paid by his own carrier. Assuming the damage is accepted at $800 for the sake of simplicity in this example, Party A's carrier would pay $300 to Party A ($500 deductible). The carrier would then present its subrogation claim to Party B's carrier and would be paid 50% of the damage -- $400. Party A's carrier would then reimburse Party A the proportionate share that the recovery bears (50%) to Party A's deductible -- $250. By making a claim under his collision coverage, Party A eventually recovers $550.

Of course, Party A would be required to return the $400 originally paid by Party B's carrier. You can't have it both ways.

Where things can get interesting is when Party A's company inspects his car and determines the reasonable rate of repair is, say $600, not $800. In that case, Party A's eventual recovery would be $350 if he uses the collision coverage and $400 if he just accepts the 50% offer from Party B's carrier.

Many insurance agents are just selling machines and have not even basic knowledge of the claims process. What I just explained is not specialized knowledge. Any insurance agent who doesn't understand this or can't explain this is probably not someone you want to rely on long term to handle your insurance needs.

Hope this helps.