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Two cars, in same accident, under same AAA Policy.

Accident in my driveway. Daughter backing out (2009 Civic), backed into wifes car (2008 Lexus).

Both cars have damage - totaling a few thousand.

Both cars have AAA insurance.

Claims person said each car would have to cover the $1000 deductible and that my daughters policy would reflect a $1500 rate increase over three years ($500 per year).

Why do I have ANYTHING to pay for the Lexus, when it was an innocent bystander, so to speak?

FYI, in total, I insure 4 vehicles and my home with AAA, and have been a policy holder for over 10 years.

They tried to explain, but it really feels like an injustice.

Thank you,
Rob



Answer:


Hello Rob,

It's unfair. But this does not make sense. There should not be a deductible for the damages to the vehicle that was parked. It was the liability coverage of the Civic that should cover the Lexus (no deductible is applied to liability coverage).

If the Civic has collision coverage then the damages to the Civic are subject to that deductible. HOWEVER - read the policy. Most "dual claims" waive deductibles. It may not be your case, but it could be.

Regarding the rates, there is really not much you can do. The fact that she back out into a parked vehicle shows that she is a higher risk to insure. Talk to the office of the insurance commissioner to get more answers.

Also, go back to the adjuster and ask to see the policies. How and Why are they charging this? It cannot just be "the way they do it." It must be in writing.

It's wise to talk to a lawyer.

Good Luck,
Auto Insurance Claim Advice

Comments for Two cars, in same accident, under same AAA Policy.

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Sep 03, 2010
 Liability...
by: Anonymous

Hello,

I have worked for three different insurance companies and what the claims adjuster told you is completely correct. The rate increase seems quite large, but as was stated earlier, that is up to the company's discretion. The part that I want to address is the deductible and how liability pays out. Since both vehicles are insured under the same AAA policy, liability cannot come into play for one simple reason: you can't sue yourself. So, when you need to have two of your own vehicles repaired, you end up paying a deductible for each vehicle's repair, exactly as stated in your policy.

I hope this makes it easier to understand. Best wishes!


Our Reply:

Thank you for the comment. However, your answer is incorrect as applied to these facts.

The daughter backed out into dad's Lexus. The daughter is liable to the dad. Daughter can be liable to her own father, that applies in all states (this is even true for community property states where one spouse causes harm or property damage to the other).

The policy will not lie. We have successfully sue carriers for this type of misrepresentation.

The statement that because two parties are part of one policy bars recovery is very incorrect. Again, husband can drive and cause accident, injuring wife. Both are "insureds" and Policy holders, but the tort of husbands still exists. The negligence still existed and thus, it must be compensated. Inter-spousal tort immunity has been overrule long time ago (subject to every state interpretation of U.S. Supreme court decisions).

All auto policies that provide for liability coverage of the insured (the driver, in most cases), but they cannot disclaim the injured party "the claimant" simply on the basis of insurance standing, if they do, this clause would largely be held unenforceable as it it is not consistent with U.S. Supreme Court precedent.

The statement that you cannot be liable to yourself is correct; it's Person A who has to cause the Damage to Person A. This is not the case here.

Good Luck,
http://www.quirogalawoffice.com/

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