Why did my uninsured motorist claim go under my collision coverage instead of my uninsured motorist property damage coverage?

"My vehicle was deemed a total loss at $35,000 after an accident with an uninsured driver. I have a $1,000 deductible for collision and a $250 deductible for uninsured motorist property damage.

My insurance made a mistake with the initial claim as my property damage limit is $25,000. I now have to pay an additional $750 for my collision deductible as they switched the claim. Why am I paying for their mistake?"

“While it’s unfortunate that the mistake happened, the actual cash value of your vehicle is exceeding your uninsured motorist coverage limit.
When you agreed to the policy with your insurance company, you agreed to the maximum coverage limits that you paid for. Since your car’s actual cash value is exceeding those limits, your insurance company has a right to submit the claim under your collision coverage.
Depending on where you live, your insurance company might also have used your uninsured motorist coverage as your primary coverage and then taken the remaining $10,000 from your collision coverage. This would mean you still need to pay your collision deductible.
If you didn’t have collision coverage, you would only have been paid your property damage limit of $25,000. If your vehicle is worth $35,000, you would have lost $10,000.
Emily Maracle
Answered on May 10, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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