Personal Auto PolicyQuestion 410 of 474
A car is stolen and recovered three days later with $4,300 in damage. The policy shows a $100 other-than-collision deductible and a $1,000 collision deductible. The insurer pays:
a.$3,300, because a thief drove the car away
b.$3,200, because both deductibles apply to the claim
c.Nothing, because a recovered auto is not a real loss
d.$4,200, because theft is other than collision
Explanation
The cause of loss is the theft, an other-than-collision peril, so the $100 deductible applies to the damage found on recovery: $4,300 - $100 = $4,200. Subtracting the $1,000 collision deductible because a thief drove the car picks the wrong coverage for the same event. Recovery of the auto does not erase the loss; it changes the claim from a total to a repair.
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