50/50 Split Responsibility - is the Deductible Split?

[jamval]

Case: (New York State) Auto A and Auto B both back up and strike each other.
Both parties agree to split fault 50/50.

Auto A: Has $800 Damage
Auto B: No Damage $0

Auto B Liability Insurance pays for half the damage to Auto A; $400

Is Auto A Collision insurance responsible for the other half? Auto A collision policy has a $500 deductible. Since fault is shared 50/50 is the deductible also split?

Does Auto A collision insurance pay ($400 less half the deductible $250) = $150.

-or- does the deductible remain $500 regardless of the shared fault?

Thanks

 

[BigSteve]

Although I am not in NY I would imagine the deductible is never going to be split, the deductible is $500 regardless of the situation, if the insurer feels it is worth it to go after the other $$250 they will, but it would cost them more in legal fees to do so. This would be a pointless claim to file. You SHOULD discuss this with your agent, assuming you have one, if not, then now you see why it's worth that quote that may have been $3 more a month.

 

[hesse]

In mn when its 50/50 at fault my insurance pays to fix your and yours pays to fix mine

 

[jamval]

Big Steve,

Oh, Yes, I have an agent.

And, Yes, I asked my agent first, before posting here. His answer was (and I quote):
"I don't know how it works. I only know the sales side. You will have to ask your Insurance Company's claims representative (the same company he recommended for me to by insurance from). And the claims rep they assigned does not return my calls.

That is why I asked the question here.

I hope I made the situation clear. I am Auto A. I backed up at the same time Auto B was backing up. We hit each other. Auto B had no damage. I had $800 in damage.

Both drivers notified their respective insurance agents, who in turn notified their respective insurance companies. Both insurance companies assigned a claims rep who in turn contacted both drivers for statements. Both companies assigned 50% fault to each driver.

BTW At least one day could have been shaved from the process by calling the insurance company directly which is an option, instead of going through the agent. There are smart phone apps where you can do that right from the accident site, no agent involved.

I sent each insurance company (directly) a damage estimate for $800. (Not sending it to my agent saved me a day.)

Auto Insurance B already sent me a check for half the damages to my car ($400); paid on the Liability coverage for the driver of Auto B. They have been very responsive to me, returning my calls, etc. and I'm not even their customer. They cut the check the day after I sent the damage estimate. No quibbling about the estimate either. While my insurance company and agent treat me like dung.

As for 'legal fees' that my insurance company would experience - it's called subrogation - it's a cost of doing business, and would not be a factor in deciding whether or not to get me the legal compensation I am due. That would be doing business in bad faith and is illegal in New York State. However in this case I did it for them, I have gotten everything I am due from the other company already.

A claims 'investigator' from my insurance company that has been scheduled to photograph my car and evaluate the damage estimate implied that the deductible gets split along with everything else, but as he said, he doesn't approve the check.

I've seen comments about it not being worth it to file a collision claim. I don't understand that. In New York I don't have to carry collision insurance for damage that I am at fault for on my own car. I am required to carry liability insurance for damage I cause to someone else's property.

So why would I pay an additional optional premium for the collision insurance, and then not file any claims against it? The agents always recommend buying the optional collision insurance, but why do they recommend not using it when you have an accident?

I look at auto insurance as a form of perverse gambling. My insurance premium is a bet that I will have an accident and I will get a payout. The insurance company is the casino that accepts my wager on the basis that I probably won't have an accident, increasing the odds of winning by hoping I leave my payout on the table even if I do have an accident. And, if I have too many payouts they either raise my future wagers (premiums) or throw me out of their casino. The house always wins.

I am retired and have been driving close to 50 years. This is the third time in my life where I needed my agent to answer questions and help with a claim process, and it is the third time in my life where the agent was as useful as a rubber crutch. Different agents in each case. In each case they deferred to the insurance company's claims rep.

On the sales side, the agent would be useful if he shopped rates for me, at least every few years, but none of mine have ever done that for me either. I have changed agents periodically after shopping rates for myself and discovering that I could be saving money.

So tell me, what value am I getting for that few extra bucks a month?

Big Steve, thanks for the reply, but like my agent you didn't answer the question either, other than you 'imagine that the deducible is not split'.
I was looking for a more definitive 'legal' answer, something along the line of YES it does get split or NO it does not get split. Imagination doesn't pay the bills.

 

[jamval]

hesse,
Apparently in NY it's different. The other driver's insurance company already sent me a check for half the damage, based on their driver being assigned to half the fault.

My agent doesn't know how my deductible comes into play, and my insurance company does not return my calls.

Amazing, I've bundled everything with them to the max coverage, autos, home, a million dollar umbrella policy, referred family members to them, for the past 7 years and now they ignore me over what may amount to a few hundred dollars.

Loyalty doesn't pay, time to move on.

 

[cottonland]

It depends if your state is a comparative or contributory negligence state.

----------

It depends if your state is a comparative or contributory negligence state.

Look here. http://axilonlaw.com/wp-content/uploads/2012/04/50_State_Compendium_-Final_reduced_size.pdf

 

[jamval]

cottonland,
Thanks for the link.

"New York is a pure comparative negligence jurisdiction. New York also recognizes the right of apportionment among tortfeasors based upon their actual degrees of fault as determined by the fact finder."

The definition of tortfeasor is the person who commits a wrongful act, so this is in reference to the portion of liability assigned to the opposing driver. It makes sense, as the insurer of the other driver, Auto B, has already paid me for half of my $800 damages; I received $400 (the 50% apportionment determined by the "fact finders"). In this case both insurance company's claims departments made reference to 'rule of law' where 50% of fault is assigned to each party when each party is backing up.

What about the collision claim I still have on my own insurer - the other half of my damages ($400) are my fault, and when I carry collision insurance, my insurer pays the financial loss that I am at fault for, less the policy deductible. If I had backed into a pole it would be 100% my fault and my collision insurance would pay out $300 ($800 minus my $500 deductible).

So the question remains for my collision side of the claim - is the apportionment (50%) also applied to the deductible when I am 50% at fault?
My half of the loss is $400, does the deductible remain the full $500 or is the deductible also apportioned by 50% to $250?

I can live with either outcome, I'd just like to know. I don't trust my insurance company, they just don't respond to my calls and questions. And my agent doesn't know the answer either.

Thanks again for the link, if nothing else it has improved my vocabulary - "tortfeasor" - the spell checker doesn't even recognize that.

 

[blue_wynd]

Sounds like you need another agent. Even if (s)he doesn't, they should have took the time to find out the answer for you. Looking at this logically, my opinion is the deductible will apply if you use your own insurance. I haven't heard of deductible being split before. You can look at this way, the other party is 100% at fault, but they don't have insurance; so they have no money for you. At this point you use your own insurance, where your deductible applies. So if full deductible applies even if the other party is 100% at fault, why wouldn't it apply if it is 50%?

Subrogation wouldn't apply in this case, since the other party already pay their 50% share. There is nothing else to subrogate against.

 

[moonlightandmargaritas]

Both parties agree to split fault 50/50.

Actually the claim adjuster will make this determination.

 

[jamval]

Actually the claim adjuster will make this determination.

Yes, the claims adjusters both agreed to 50/50 split. That's what I meant by both parties agreed to split fault.

----------

Subrogation wouldn't apply in this case, since the other party already pay their 50% share. There is nothing else to subrogate against.

Yes, I know, I said that in a previous reply. But what may or may not apply is the remaining portion of the claim on my own collision insurance. The insurance investigator that my company is scheduling to photo my car and review the estimate said in his experience the deductible gets split in these types of cases, but he's not the claims rep making the final decision.

It's strange that the other company paid $400, no questions asked, no photos, no sending someone out to look at the car and the estimate.
But my company is doing this over what would amount to $150 at most, maybe nothing if the full deductible applies.

As for getting a new agent. Not likely, like I said, there has been 3 situations in almost 50 years of driving where I needed my agent, and they all failed each time. I recovered more damages in each case working through it myself. And agents have never diligently shopped rates for me. I'm done with agents.