Our personal auto policy insured was towing his own vehicle behind his own motor home. During the course of the trip, the towing bar broke and the auto crashed into the back of the motor home. Our question involves the deductible amount for this loss: does the $500 collision deductible apply to the loss or to each vehicle? We (the insurance company) say it applies to each vehicle while the agent contends that only one deductible would apply. The agent bases his contention on communication with others in the industry and also (as a former police officer) on the fact that, had the driver been arrested for speeding, he would have received only one speeding ticket although two vehicles were traveling down the highway. Your opinion?
Ohio Subscriber
The standard ISO personal auto policy promises to pay for direct and accidental loss to "your covered auto," minus any applicable deductible shown in the declarations. As you state, the deductible clause on the policy declarations reads "$500 per vehicle." On that basis, we are of the opinion that it puts an undue strain on common sense to argue that the deductible applies "per loss."
As for others who would champion a "per loss" application, perhaps their policies are modified to that effect or perhaps they are remembering what used to be. The old Family Automobile policy had a provision that only one deductible would apply in a collision involving two vehicles insured by the same company.
Editor's note: The 09 18 edition of the personal auto form clearly states that if loss to more than one "covered auto" results in the same "collision", only the highest deductible will apply. In the above situation the motor home would need to be covered under the auto policy but in such case, under the newer policy language, only the highest deductible would apply.
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