Conceptin Personal auto policy
Drill7 items
Collision vs other than collision (comprehensive)
Under the personal auto policy (PAP 2018), collision is the upset of the car or its impact with another vehicle or object; other than collision (OTC), usually sold as comprehensive, covers any other direct and accidental loss, and the form names ten causes that count as OTC even when there is an impact, among them falling objects, contact with a bird or animal and glass breakage. Which side a loss lands on decides which deductible comes off.
Four labels for physical damage
- Collision (PAP)
- The upset of your covered auto or a non-owned auto, or its impact with another vehicle or object.
- Other than collision (PAP)
- Any direct and accidental loss that is not collision. The form specifically counts these as OTC: missiles or falling objects; fire; theft or larceny; explosion or earthquake; windstorm; hail, water or flood; malicious mischief or vandalism; riot or civil commotion; contact with bird or animal; breakage of glass.
- Comprehensive (business auto)
- The commercial form's broad option: loss from any cause except the covered auto's collision with another object or its overturn.
- Specified causes of loss (business auto)
- A narrower, cheaper option that names its perils, such as fire, lightning, explosion, theft, windstorm, hail, flood and vandalism.
Sort the loss
| What happened | Deciding words | Coverage |
|---|---|---|
| Flash flood water reaches the seats of a parked car | water or flood | OTC |
| The car slides on gravel into a concrete planter | impact with an object | Collision |
| Rioters dent the hood and snap a mirror | riot or civil commotion | OTC |
| A horse kicks the door in a county fair lot | contact with an animal | OTC |
| The driver backs into a loading dock post | impact with an object | Collision |
| A wildfire blisters the paint | fire | OTC |
| The car is stolen and recovered with a crushed fender | theft | OTC |
Collision or OTC?
0 of 7 answered · 0 right
Name the cause before doing any arithmetic: the cause decides which coverage responds and therefore which deductible comes off.
Notes on each optionCommit to an answer first. The notes under the item then open on every option: what rules it in or out, and the one word that splits the runner-up from the key.
- Item 01
While Ana is driving, a bird strikes and cracks her windshield. Under her personal auto policy, this loss is covered as:
- AThe PAP expressly lists contact with a bird or animal as other than collision, not collision.
- BPart A pays for damage to other people's property, not to her own car.
- CCorrect: contact with a bird and glass breakage are both other than collision losses under the PAP.
- DGlass breakage is not excluded; it is a listed other than collision loss.
- Item 02
All of the following losses are covered as other than collision under a PAP EXCEPT:
- AHail is a listed other than collision loss.
- BCorrect: the PAP defines collision to include upset of the auto, so an overturn on ice is a collision loss.
- CContact with an animal is listed as other than collision, even though the car hit the deer.
- DTheft and glass breakage are both listed other than collision losses.
- Item 03
Todd hits a deer while driving his car. His personal auto policy has a $250 other-than-collision deductible and a $500 collision deductible. Repairs cost $3,200. How much will the insurer pay?
- ACorrect: hitting a deer is an other than collision loss, so the $250 OTC deductible applies: $3,200 − $250 = $2,950.
- B$3,200 forgets the deductible entirely.
- C$2,450 applies both deductibles, but one loss carries only one deductible.
- D$2,700 applies the collision deductible, but hitting an animal is an other than collision loss even though the car did 'collide' with the deer.
- Item 04
Swerving to avoid a deer, Carlos drives into a tree. The deer is never touched. Under his PAP, the damage to his car is:
- AContact with an animal is OTC only when the car actually hits the animal, and the deer was never touched.
- BSwerving is not an exclusion; the damage is a covered collision loss.
- CThe loss is not split; one cause (hitting the tree) means one coverage.
- DCorrect: the car struck a tree, an impact with an object, so it is a collision loss.
- Item 05
Ben's car hits a guardrail, and the impact also cracks the windshield. His PAP has separate collision and other-than-collision deductibles. The glass damage:
- APaying the glass under OTC with a second deductible is exactly what the PAP option exists to prevent.
- BGlass broken in a crash is not wear and tear.
- CCorrect: the PAP lets the insured treat glass broken in a collision as part of the collision, so only one deductible applies.
- DNo glass endorsement is needed; the option is built into Part D.
- Item 06
A thief breaks Sara's car window and steals her laptop from the seat. How are the window and the laptop covered?
- AA window broken during a theft is not a collision, and Part D does not cover the laptop.
- BCorrect: the broken window is an other than collision loss under the PAP, and the laptop is personal property covered by her homeowners Coverage C.
- CPart D covers the auto and its equipment, and a laptop is neither.
- DDamage to the car itself belongs on the auto policy, not the homeowners policy.
- Item 07
On a calm day, a tree limb falls on a parked company car. Which business auto physical damage coverage pays for the damage?
- ACorrect: falling objects are a comprehensive loss under business auto physical damage, even though something strikes the car.
- BSpecified causes of loss lists named perils such as fire, theft and windstorm but not falling objects, and the day was calm.
- CCollision is limited to the auto's impact with another object or its overturn, and falling objects are expressly comprehensive.
- DTowing and labor pays to tow or service a disabled auto, not for damage.
Two losses, two deductibles
WorksheetDeductible
One policy year, two claims: OTC deductible $500, collision deductible $1,000
- OTC deductible
- $500
- Collision deductible
- $1,000
- Flood damage to the interior
- $6,400
- Scrape against a parking post
- $1,350
- Flood is OTC$6,400 − $500$5,900
- The post strike is collision$1,350 − $1,000$350
Insurer pays for the year$6,250
Part D pays the lesser of actual cash value (ACV) or the cost of repair, less the deductible of the coverage the cause falls under.
The same split on a business auto policy
The business auto form (CA 00 01, 2020 edition) renames the pieces: comprehensive in place of OTC, the narrower specified causes of loss beside it, and collision, which there means the covered auto's collision with another object or its overturn. Its physical damage exclusions include wear and tear, freezing and mechanical breakdown.
Which autos carry each coverage is set by the number beside it in the declarations, so a commercial item can turn on the business auto covered auto symbols before it ever reaches the cause of loss. The rest of that form is on the commercial auto page.
Borrowed cars on the PAP
When you drive a car you do not own, Part D gives it the broadest coverage you carry on any of your covered autos, and that coverage is excess over other collectible insurance. Parts A through F in order are on the personal auto policy page.
Transportation expenses ride on the same split
PAP 2018 pays temporary transportation expenses of up to $30 a day and $900 in total, with no deductible, but only when the auto carries the coverage the loss falls under. After a theft, payment starts 48 hours after the theft; after any other covered loss, once the auto has been out of use more than 24 hours. The older 2005 edition used $20 a day and $600.