|
|
|
« Back to Articles |
Next Article » |
Article 13 of 20 in Understanding Your Fault-Based Auto Insurance Policy |
Uninsured motorists car damage coverage: overlapping liability insurance policies (other insurance) and arbitration |
 |
Other Insurance
The wording in our sample fault-based policy says:
| If there is other similar insurance on a loss covered by Coverage D2, we will pay our proportionate share as our limit of liability bears to the total limits of all applicable similar insurance. |
Explanation
Suppose your car is damaged in an accident with an at-fault uninsured motorist, and you are making a claim for uninsured motorist car damage coverage under your auto policy. If you have an additional policy with similar coverage, this fault-based policy will pay a proportionate share along with the additional policy, or 50-50.
Arbitration
As with many of the other sections of the fault-based policy, if you and the insurance company don’t agree on whether or not you are legally entitled to recover damages under this portion of the policy, or you don’t agree on the amount you are entitled to, an arbitrator will decide. Here is what the policy says:
If you and we do not agree that you are legally entitled to recover damages from the owner or operator of an uninsured motor vehicle because of loss to your insured car or, if so entitled, do not agree as to the amount, either party, on written demand of the other, shall, except in Nevada, institute arbitration proceedings as provided in Section 11580.2 and the following sections of the Insurance Code of the State of California. Expenses and fees of arbitration shall be paid as provided in Section 1284.2 of the California Code of Civil Procedure. Any award shall be within the terms and limits of this policy.
In the event of a dispute as to coverage under Coverage D2, any arbitration proceedings will be postponed until that dispute is resolved by agreement of the parties or by a court of competent jurisdiction.
|
Explanation
Basically, either party, i.e., the insured or the insurance company, can demand arbitration in writing if the insured and insurer do not agree on whether or not there is a valid claim or on how much should be paid for such a claim under the UM Car Damage Coverage Part of the policy. If the disagreement is regarding coverage, that issue must be resolved first by agreement or in court. |
« Back to Articles |
Next Article » |
|
|
|
|
|
Auto Insurance Center
Auto | Homeowners/Renters | Health | Life | Site Map | Privacy Policy | Media | About Us | Contact Us