When a person takes out car insurance and decides to have a all risk coverage You likely have a fixed or variable amount deductible. It is important to know that, in the event of a road accident, you can claim that part from the “third party” as long as it was the one that hit you.
What does that franchise refer to? In case of contracting an all-risk insurance policy, the user must look at the coverage clauses to know what amount is covered by their company and avoid surprises in the event of an accident and requesting coverage.
In some cases, the insured do not have complete knowledge of the amount from which the insurer will cover the damages. This value is called franchise and it is important to know if it is a fixed amount or a percentage of a determined value or to be determined.
This will be very relevant if a road accident occurs between two or more vehicles and the coverage must be used. In that case, whoever is not responsible for what happened may recover or claim the amount of the excess from the person who caused the collision.
That is why it is very important collect all documentation at the time of the collision to be able to file a complaint with the insurance company itself and the claim with the vehicle that collided with you.
The claim, step by step
For example, what happens if you are stopped at a traffic light and are hit from behind?
The first thing to do is ask for documentation of the other vehicle, its driver and the insurance company that will provide coverage. Immediately after the accident, you must file a complaint with your own insurance company and request a quote for the repair.
However, certain questions may arise, such as: Do you have to pay despite having been attacked? Unfortunately the answer is yes, the user must pay the amount of the first portion of the settlement up to the amount of the deductible.
This value is determined according to agreed in your insurance policy. To know what the amount is, you should look at the specific clause because there are many ways to agree it, it could be a fixed sum, a percentage of the value of the vehicle, a percentage of a similar 0 km vehicle, etc.
Returning to the example of if the crashed vehicle had comprehensive coverage with a deductible and the repair estimate exceeds the amount of the same, the insurance company will issue a letter in which The value that the crashed insured is paying will be stated to be able to claim it from the other company.
For example, if the deductible is $400,000 and the repair cost is $1,000,000, then you will be responsible for that $400,000 (the rest is borne by the insurer).
If the other vehicle also has an all-risk policy You will not be able to claim the amount paid as deductible, because the person responsible for the incident is responsible for that amount and cannot claim it from anyone else.
In conclusion, if the insurance coverage contracted is all-risk and the amount of the repair exceeds the amount of the deductible, a claim may be made to the owner of the vehicle that caused the material damage or to his insurance company.
For this you will need to request the franchise letter that your insurer will issue and then present it to the other insurance company. In this way, the user will be able to recover the repair amount. In this case, $400,000.
It is made clear that the specific case must always be evaluated and this note does not imply advice on the specific situation but rather general guidelines.
