Collision Coverage Under a Personal Auto Policy

Our insured was driving his car down the highway when a tire on the car shredded. Parts of the tire broke the muffler system and dented the wheel well. The insurer wants to cover the damage under the collision coverage, but we feel that other than collision coverage is more proper. Your thoughts on this claim will be appreciated.

 

Pennsylvania Subscriber

 

The definition of “collision” that is on the auto policy is important in this instance. Assuming that the definition is “impact with another vehicle or object,” we believe that if the tire tread had completely separated from the rest of the tire and the wheel at the time it struck the muffler, collision is the proper coverage; that is, if the tire tread pieces had separated from the tire and wheel, then they were “another object” that collided with the insured's auto. If the pieces were still somehow connected to the auto at the time of the damage, then the pieces cannot be considered “another object” separate from the insured's auto. In such an instance, coverage would be under the other than collision part of the policy.

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