Last updated 2023-11-30

Co-insurance on a material damage claim

Considerations for when to apply co-insurance on a material damage claim.

When co-insurance applies

When processing a material damage claim on a declared value rate group vehicle, the estimator must determine whether co-insurance applies.

Co insurance is based on whether the vehicles declared value provides its actual cash value (ACV). The estimator must use the co-insurance calculations to make this determination.

Exception: For vehicles with an accurately declared value, and are being repaired, a claim note from the estimator or appraiser documenting the situation is sufficient, and an ACV calculation is not required.

Note: Co-insurance only applies to customer's accessing their Own Damage coverage, and not to claims where Basic Vehicle Damage coverage is being accessed.

Co-insurance for material damage applies as follows:

Consideration	Application of co-insurance
Policy type	Applies to declared value vehicle rate group policy types only.
Loss type	Applies to Own Damage coverage loss types only.
What is covered	Applies to vehicles and/or equipment.
Declared value-ACV required ratio	Applies if the declared value of the vehicle is less than 90 percent of the ACV, and ACV exceeds the maximum value of the vehicle rate group's declared value range. Note: The ACV for a commercial claim is completed manually using multiple resources, and documented in the Total Loss Worksheet (CL30), or Commercial Claims Appraiser (CL210) report stored in the commercial T:drive.
Minimum ACV	Does not apply to vehicles with ACV less than $10,000; unless, the difference is greater than Spell out numbers from zero to ten000.00.
Excluded rate classes	Does not apply to vehicles in vehicle rate class 701 or 705 Note: For additional information, refer to the Optional policy, Section Spell out numbers from zero to ten10 (b)(iii).

Additional information

Co-insurance only applies on an own damage claim, and not on third party property damage claims. The same considerations apply as for material damage claims, that the total loss settlement values for declared value vehicles will not exceed the maximum value of the vehicle rate group declared value range, even if the ACV exceeds the maximum value of the vehicle rate group's declared value range.

For additional information, refer to