Nonowned Auto Loss Payable by Insured's PAP?

Our insured was driving a nonowned car that is insured by its owner for physical damage subject to a $500 deductible. He was involved in an accident that damaged the car. He carries physical damage on owned vehicles with a $100 deductible and has filed a claim on his policy for $400—the difference in deductibles.

California Subscriber

A personal auto policy pays for damage to a nonowned vehicle on an excess basis over any other collectible source of recovery. In this case, the physical damage coverage held by the owner of the car will pay first, with the insured driver's nonowned coverage applying as excess. The excess amount is therefore the difference in deductibles, or $400.

 

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