Auto Insurance Claims: Auto Comprehensive policy, insurance expert

Question
Tire tread flew off my son's 3/4T truck and damaged the wheel well and side panel. His comprehensive insurance company is willing to pay for repair after subtracting the deductible. He contacted tire manufacturer and they said the tire distributor put improperly rated tire on truck. The insurance company said they have no obligation to collect the damages from the tire distributor or manufacturer in order to recover the deductible. Does Comprehensive require a "make whole" obligation on the insurance company where I am not at fault and the faulty party is known?

Answer
Hello Gerald,

Quite frankly, you are fortunate that the terms of your policy cover this type of loss.  Not always the case.

But to your question.  This is not about making whole again.  You are entitled to payment for you damages, minus the deductible.  Assuming the offer is a fair one, that is making you "whole again".  And, comprehensive does not depend on "fault". Simply stated, it is for losses not caused by collision.

Now, as to collecting damages from the distributor, that is a tall order.  Insurance companies collect from one another via a process called subrogation.  If an adjuster were to contact the carrier for the distributor, it is possible that they might accept liability and agree to pay for your repairs.  That would include a refund for the deductible.

But this case is probably not as basic as you might think.  It is entirely possible that the distributor might not pay, or might blame the defect on the manufacturer.  The point is, this is potentially a very complicated process - and it is unlikely that neither the distributor nor the manufacturer is going to eagerly accept responsibility.

From the standpoint of your carrier, they must feel that the process would be more costly and time consuming than simply paying for your damages.  And, no, they are not obligated to seek subrogation.  In simple cases, insurance companies will subrogate to cover payments made to their insured that should be assessed to another carrier or party.  But this is much more complicated.

Other than accepting payment minus your deductible, your only other option would be to contact the insurance carrier for the distributor and file a claim.  If they accept responsibility, you could receive compensation for your full damages.  But I would not recommend this.  That is, in my opinion, an unlikely scenario.  You might consider consulting with an attorney.  But that is probably not a cost-effective approach either.

Hope this helps. Good luck.

Jane Pytel
http://InsuranceExpertAdvice.com