Below is a sample Auto Insurance Policy
used to illustrate how an auto claim might be viewed and settled by the insurance company.
- What Happened?: The insured’s unattended car rolled down a hill and crashed into a restaurant.
- Caused $15,000 damage to his car
- Caused $75,000 damage to the restaurant
- What Was Covered?:
- Insured’s car was covered under Collision for the full amount of $15,000 minus the $1,000 deductible.
- Repairs to the restaurant were covered under Property Damage Liability for the full amount of $75,000
- Explanation: In both cases the losses were within the policy limits and as such, claims were paid minus the policy deductible amounts where applicable. Please note:Collision coverage pays for repairs to your own car if it is damaged by another car or crashes into an object like a wall, tree an animal or even a restaurant