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.
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
Note: The ACV for a commercial claim is
|
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.