Question of part D -- coverage for Damage to your auto

[chinese_girl]

Can anyone tell me the answer to the following question? Thanks.

John’s auto is covered for comprehensive and collision. His car was hit by Adam’s car in an accident, Adam was at-fault and he didn’t have any insurance policy. The damage to John’s car is $7,000.

Question:
1. Will John’s insurer pay the $7,000 loss? (Suppose this state is a tort-state and John didn’t buy uninsured/underinsured coverage.)
2. If John had uninsured coverage in his policy, will John’s insurer pay?
3. If John’s car in the accident is a rental auto, will John’s policy pay the loss?

[jets fan]

Can anyone tell me the answer to the following question? Thanks.

John’s auto is covered for comprehensive and collision. His car was hit by Adam’s car in an accident, Adam was at-fault and he didn’t have any insurance policy. The damage to John’s car is $7,000.

Question:
1. Will John’s insurer pay the $7,000 loss? (Suppose this state is a tort-state and John didn’t buy uninsured/underinsured coverage.)
2. If John had uninsured coverage in his policy, will John’s insurer pay?
3. If John’s car in the accident is a rental auto, will John’s policy pay the loss?

I'll preface all of this by saying "If I remember Part 5 correctly":

1) John's collision will pay, and then John's insurer will have subrogation rights against Adam, who is responsible and will have to reimburse John's insurer.

2) UM typically only covers BI - John would have to have UM-PD, and then that would only cover the deductible under the collision.

3) From my Part 5 CSM: "Rental Vehicles ... Policy provides broad coverage even where not legally responsible ... But if state prohibits such, renter's PAP will not cover physical damage and loss of use for rental vehicles"

[chinese_girl]

Thank you very much, jetsfan. But I still have a question. If John's insurer will pay the loss anyway under part D. Then why bother to buy the UM-PD option? It seems useless.

[MountainHawk]

You either buy UMPD because

(a) It's ground up and will cover your collision deductible (I think)

or

(b) You reject Collision coverage all together.

[Cho Da]

Indeed, that's why it isn't often offered.

[jets fan]

Thank you very much, jetsfan. But I still have a question. If John's insurer will pay the loss anyway under part D. Then why bother to buy the UM-PD option? It seems useless.

One other point, as I remember from my auto days, the UM-PD coverage is very cheap - only a couple of dollars, depending on the limit you buy. It could be an inexpensive way to fund your collision deductible.