Personal Auto PolicyQuestion 400 of 531
A driver rounds a bend and drives into a large branch already lying across the road, causing $2,600 of damage. The policy carries a $1,000 collision and a $250 other-than-collision deductible. The insurer pays:
a.$1,600, as striking an object is a collision loss
b.$2,600, since no deductible applies to debris
c.$1,350, the damage less both of the deductibles
d.$2,350, treating a fallen branch as comprehensive
Explanation
Driving into an object lying in the road is impact with an object, which is collision, so the $1,000 collision deductible applies and $2,600 less $1,000 leaves $1,600. Had the branch fallen onto the car instead, it would be a falling-object loss settled as other than collision with the $250 deductible. Only one deductible is applied to one loss.
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