05.01. PAP Part D - Coverage for Damages to Your Auto

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05.01. PAP Part D - Coverage for Damages to Your Auto
2013-04-06 10:12:45
Part Coverage Damages Your Auto

Part D - Coverage for Damages to Your Auto
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  1. Collision losses
    • paid regardless of fault
    • if 2 or more insured vehicles are in a collision accident, only the highest deductible applies to the total loss
  2. Other than collision losses
    • used to be called comprehensive
    • many motorists purchase only OTC as it's cheaper and usually has a lower deductible
    • includes missile, fire, theft, EQ, hail, glass, animal, etc
    • any direct and accidental loss that is not due to collision and is not specifically excluded is covered by OTC
    • notes: animal collision is OTC and therefore has lower deductible applied; glass breakage resulting from a collision can be paired with collision loss, to avoid paying 2 deductibles
  3. Nonowned vehicles
    • Collision coverage applies to nonowned vehicles driven by an insured, in excess of any PD coverage available on the car
    • the coverage that applies in this case is the broadest of all collision coverages on the policy
  4. 3 reasons for Part D deductibles
    • reduce small claims
    • hold down premium
    • encourage the insured to be careful in protecting their car against damage or theft
  5. Part D - Transportation expenses
    • following a covered PD loss, the insurer will reimburse the insured for temporary transportation expense
    • includes auto rental fees or taxi fares
    • up to $20 a day, max $600 per loss
    • also applies to loss of income during repairs, if any
  6. Waiting Period Deductible
    • transportation expense aren't subject to dollar deductible, but instead time deductible
    • total theft loss = 48 hours
    • other collision and OTC = 24h
  7. Part D - Exclusions
    • public or livery conveyance, except carpool
    • wear and tear, freezing, mechanical breakdown, damage to tires
    • radioactive contamination, war
    • electronic equipment, except those permanently installed outside manufacturer (up to $1,000)
    • media and accessories
    • destruction or confiscation by government or civil authorities, except loss payees
    • trailer, camper, motor home (except if ask to cover within 14 days purchase)
    • nonowned auto used w/o consent
    • radar / laser detectors (promote unsafe driving)
    • custom furnishing or equipment on pickup or van (except cap, cover, bedliner)
    • garage
    • racing
    • rental vehicles if signed damage waiver
  8. Part D - Limit or Liability
    • actual cash value or repair / replacement cost
    • nonowned trailer covered up to $1,500
  9. Part D - Appraisal
    • used when there's a disagreement on the amount of loss
    • each party selects a competent and impartial
    • 2 appraisers select an umpire
    • any difference submitted to umpire
    • decision by 2 is binding
    • each party pays its appraiser and share cost of umpire