Expert: Richard Hixenbaugh - 7/20/2009

Question
QUESTION: I have a new question how to recover the deductible if two drivers share liability. Take an example. The liability is 50/50. The deductible is $500. The repair costs are $1000. How much will the insured recover the deductible from the other car insurance? Should the insured get a total payment $$750, $250 form the other car insurance and $500 from his own insurance? Thanks for your answer.


ANSWER: Hi Ack,

If liability is 50/50, you should let your own insurance company pay for the damage to your car. So in your example they will pay you $500.00. $1,000.00 damage less your 500.00 deductible. Your insurance company will then seek reimbursement of the claim from the at-fault persons insurance company. Since liability was set at 50/50 they will ask for $500.00 which is 50% of the damage. When your insurance company is reimbursed they will send you a check for $250.00 which is 50% of your deductible.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Thanks for your answer. So, the insured will never deal with other car insurance but his insurance only for the recovery, right? How about the other property damage in the car such as ruined clothing and car diminished value? Should the insured still do not need to deal with the other car insurance but his insurance only?

Answer
Hi Ack,

Your insurance policy does not cover personal items in your car. If you had personal items damaged you would have to deal with the other insurance company yourself for those items. You will have to show them or send them the damaged items, prove what they cost and then they wil pay 50% of the depreciated value of the items.

I hope this helps
Richard Hixenbaugh