by Guest » Fri Jul 01, 2011 08:42 pm
Background:
My girlfriend used to have a clunker and declined collision/limited/comprehensive but purchased a better used car approximately 1 year ago. In switching the insurance over, she asked to add collision/limited/comprehensive but did not follow it through as well as she should have.
She got into an accident today based on adverse road conditions (glare from sun) and looking at her policy, I do see that she is not paying a premium but under "Limits" it says "Actual Cash Value" with no deductible.
Personally I find this confusing and would make me think that I am covered, I might expect to see "0" or "Declined" there.
Is this (the way it is phrased on the coverage form) common practice for people that decline Collision? The damage is substantial and getting insurance to cover would make a big difference.
Thank you in advance.
My girlfriend used to have a clunker and declined collision/limited/comprehensive but purchased a better used car approximately 1 year ago. In switching the insurance over, she asked to add collision/limited/comprehensive but did not follow it through as well as she should have.
She got into an accident today based on adverse road conditions (glare from sun) and looking at her policy, I do see that she is not paying a premium but under "Limits" it says "Actual Cash Value" with no deductible.
Personally I find this confusing and would make me think that I am covered, I might expect to see "0" or "Declined" there.
Is this (the way it is phrased on the coverage form) common practice for people that decline Collision? The damage is substantial and getting insurance to cover would make a big difference.
Thank you in advance.
Posted: Sat Jul 02, 2011 12:08 am Post Subject:
If you read the policy under collision coverage it will point out that this coverage only apples if there is premium being charged as shown on the declarations page.
Sorry, it's only "confusing" to people who did not ask for the coverage, have not been paying for it and then are in an accident. During that entire year with no payment being made for collision coverage, it was perfectly clear.
Posted: Sun Jul 03, 2011 05:46 pm Post Subject:
That's why I always make it a point to mention how important it is to go through your policy papers while signing up. Once you enroll you must go through the policy exclusions and know about the various terms and conditions.
Posted: Mon Jul 04, 2011 05:29 am Post Subject:
how important it is to go through your policy papers while signing up.
Not only is it important at the time of application, but it is also critical to verify that your issued coverage is as applied for. You do this by reading the policy declaration pages and, if necessary, verifying the coverage with the insurance company directly -- not with the agent.
Too many people do this the wrong way, and rely on the agent to tell them what they have instead. The only authoritative answer is from the insurance company itself.
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