Car insurance question

[Sureshot324]

I currently have full coverage on my car, and i'm about to go to liability only. I was talking to my insurance agent about also getting a deductable, to reduce my rates even more.

She said that i couldn't get a deductable on the liability part, which i guess makes sense because if i have a $500 deductable and hit someone and can't pay the $500, sucks for the person i hit. However, she said i could get a deductable on the damages caused if someone hits me (their fault). She said my insurance pays for this.

This doesn't make sense to me. If it's the other drivers fault, shouldn't their insurance pay for it, assuming they have insurance?

 

[envy me]

Originally posted by: Sureshot324
I currently have full coverage on my car, and i'm about to go to liability only. I was talking to my insurance agent about also getting a deductable, to reduce my rates even more.

She said that i couldn't get a deductable on the liability part, which i guess makes sense because if i have a $500 deductable and hit someone and can't pay the $500, sucks for the person i hit. However, she said i could get a deductable on the damages caused if someone hits me (their fault). She said my insurance pays for this.

This doesn't make sense to me. If it's the other drivers fault, shouldn't their insurance pay for it, assuming they have insurance?

Ill try to explain this best I know. This applies in Canada so maybe its different in the US.

Liability is the ammount of money you are covered for if you hit someone and they sue you.

Comprehensive (Fire and Theft) is when the insurance company pays you the value of your car/damages if it is stolen or set on fire or other conditions minus your deductible (note... contents inside your car may not be covered by this insurance and most times are covered by home insurance)

Collision is if you drive your car into a telephone poll and total it (your fault) the insurance company will pay you for damages.



If somebody hits you and it is their fault, you only need liability, their insurance should pay for everything. Collision is basically just for covering your ass if your a bad driver.

 

[DurocShark]

Uninsured motorist covers you if the other driver had no insurance/license/etc. A deductable can apply there.

 

[Sureshot324]

Originally posted by: envy me

Originally posted by: Sureshot324
I currently have full coverage on my car, and i'm about to go to liability only. I was talking to my insurance agent about also getting a deductable, to reduce my rates even more.

She said that i couldn't get a deductable on the liability part, which i guess makes sense because if i have a $500 deductable and hit someone and can't pay the $500, sucks for the person i hit. However, she said i could get a deductable on the damages caused if someone hits me (their fault). She said my insurance pays for this.

This doesn't make sense to me. If it's the other drivers fault, shouldn't their insurance pay for it, assuming they have insurance?

Ill try to explain this best I know. This applies in Canada so maybe its different in the US.

Liability is the ammount of money you are covered for if you hit someone and they sue you.

Comprehensive (Fire and Theft) is when the insurance company pays you the value of your car/damages if it is stolen or set on fire or other conditions minus your deductible (note... contents inside your car may not be covered by this insurance and most times are covered by home insurance)

Collision is if you drive your car into a telephone poll and total it (your fault) the insurance company will pay you for damages.



If somebody hits you and it is their fault, you only need liability, their insurance should pay for everything. Collision is basically just for covering your ass if your a bad driver.

I live in Ottawa Canada. My agent told me that if anyone hits me, their fault, whether they are insured or not, my insurance pays for damage to my car. She was pretty clear on that, though it seems wrong to me.

 

[envy me]

Originally posted by: Sureshot324

Originally posted by: envy me

Originally posted by: Sureshot324
I currently have full coverage on my car, and i'm about to go to liability only. I was talking to my insurance agent about also getting a deductable, to reduce my rates even more.

She said that i couldn't get a deductable on the liability part, which i guess makes sense because if i have a $500 deductable and hit someone and can't pay the $500, sucks for the person i hit. However, she said i could get a deductable on the damages caused if someone hits me (their fault). She said my insurance pays for this.

This doesn't make sense to me. If it's the other drivers fault, shouldn't their insurance pay for it, assuming they have insurance?

Ill try to explain this best I know. This applies in Canada so maybe its different in the US.

Liability is the ammount of money you are covered for if you hit someone and they sue you.

Comprehensive (Fire and Theft) is when the insurance company pays you the value of your car/damages if it is stolen or set on fire or other conditions minus your deductible (note... contents inside your car may not be covered by this insurance and most times are covered by home insurance)

Collision is if you drive your car into a telephone poll and total it (your fault) the insurance company will pay you for damages.



If somebody hits you and it is their fault, you only need liability, their insurance should pay for everything. Collision is basically just for covering your ass if your a bad driver.

I live in Ottawa Canada. My agent told me that if anyone hits me, their fault, whether they are insured or not, my insurance pays for damage to my car. She was pretty clear on that, though it seems wrong to me.

She may mean that your insurance company will work with the other persons insurance company and you will receive a cheque from your insurance company. Not sure though

 

[Sureshot324]

Well i called my insurance agent back, and she confirmed it. If someone hits me and it's their fault, my insurance pays for the damage to my car, whether they are insured or not. Their insurance pays only if i sue for personal injury or damage to property other than my car. Wierd.

If this is true, it would seem logical that i shouldn't legally be required to have this insurance, so that if i didn't have it, if someone hit me i would have to pay for the damages to my own car. However, apparently it's part of liability only insurance and i can't opt out of it.