Hit-and-Run Driver Crashed into Parked Car.

by Anna Glendenning | More from this Blogger

06 Jan 2007 03:19 AM

One of the most interesting insurance positions I held was in a Multi-Company Insurance Agency with a specialty in providing insurance coverage for used car dealerships. I worked in the personal lines where we made sure everyone--including the dealers employees were insured. But, my primary job was to manage all of the agencies claims. I was the liaison between our policyholders--clientele and the claims adjusters for the insurance companies we placed our customers with.

Recently a Families.com forum member Asked me about a claims situation with her auto insurance. Unfortunately, the story is one I have heard way too many times dealing with Auto Insurance and involving a hit and run driver.

"My car was involved in a hit and run while parked in the street on New Year's Night and it appears the drivers were drunk and the car was stolen (the car was left at the scene, the kids in the car got out and ran when a neighbor came out to see if they were ok). I was not driving or even in the car when the accident occurred. My car is still drivable but there is some damage to the rear corner bumper and the frame underneath. The driver hit another car before mine that might be totaled. The driver of the stolen car as far as I know has not been caught.

I have a $500 collision deductible on my insurance -- my question is will I have to pay for the repairs or will I be reimbursed by the insurance company even if the other driver is not caught? "

Every insurance policy has specific limits of coverage. Auto insurance policies generally break the different parts of Insurance coverage down into separate and specific types. The Standard form of an auto insurance policy includes the following separate limits of coverage:

• Liability Coverage
• Uninsured & Underinsured Motorist
• Medical Insurance & Personal Injury Protection
• Collision
• Comprehensive
• Additional Auto Insurance Coverage

Uninsured motorist insurance is the coverage needed when the other driver has no liability coverage, or not enough liability insurance to cover the full costs of a loss. Each state sets the limits of coverage and the amount of insurance protection may be very different depending on the insurance laws of your state.

For the situation you face and the fact it was a hit-and-run driver the portion of your insurance policy that would cover is the Uninsured motorists insurance. This coverage may be optional in your state and if you choose not to purchase Uninsured motorist coverage then you would need to make a claim under the collision portion of your insurance. Claims made under the collision coverage are viewed as an at fault claim by your auto insurance. Sometimes you will be charged for a collision claim as if it was an at fault accident.

Selecting Uninsured or Underinsured Motorist insurance coverage is often optional, and insurance companies assume that not choosing this protection is part of your personal risk management decisions. Optional coverage is designed to allow the insured to accept the risk they might suffer a loss the optional coverage would have paid for. Some people may rather take the risk and pay if their car were to be hit by an uninsured driver others may want the added protection.

This type of insurance might also be more costly if you park your car on the street and not in a garage. Uninsured motorist will pay expenses up to the limits of the policy, when the damage it the result of an accident caused by an uninsured driver. The uninsured driver has to be the one responsible for causing the loss or crash. Most Insurance companies define an uninsured driver as:

• A driver with no insurance.
• A driver who can't be found like a "hit and run driver"
• A driver with insurance, but their insurance company is financially incapable to pay claims
• And a handful of situations which may be considered to involve an "uninsured" motorist.

Claims paid from the Uninsured coverage may be controlled by mandate setting limits under your state's financial responsibility laws. Some states have laws that require insurance companies to offer uninsured insurance with set limits. Several states do allow Auto Insurance customers to "reject" this coverage completely. In those states typically the customer has to sign a written request rejecting this coverage.

Most insurance customers would like to be covered for injuries and damages caused by others, after all we pay our insurance premiums and didn't cause a hit-and-run. Because of the fact these damages are not caused by our own fault it seems reasonable to expect some insurance to cover these damages.

First check your policy and find out if you have Uninsured/Under insured coverage. Some states and insurance companies also break this coverage down, personal injury or property damage. There may or may not be a deductible for Uninsured property damage. However, filing a claim for damages caused by a hit-and-run under your uninsured protection should not appear as an at fault claim.

If you don't have this coverage you might ask for a quote to add it, and you might check into your states Auto Insurance laws to find out if it should have or was properly presented to you.

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Related Blogs:

• Retained or Accepted Risks
• How to Get an Accurate Auto Insurance Quote
• Are You A High Risk to Your Auto Insurance Company?

Glossary of Insurance Terms:

A | B | C | D | E | F | G | H | I | J-K | L | M | N | O | P | Q-R | S | T | U-V | W-Z

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Auto, Hit-N-Run, Uninsured Insurance