An insured has uninsured motorist property damage coverage with a $10,000 property damage limit. His vehicle is involved in an accident that results in a total loss. The loss exceeds the policy limit, so the claim is paid under the collision coverage.

The agent requests reimbursement of the $500 collision deductible under the uninsured motorist property damage coverage, but the carrier denies the claim based on the following policy wording: “F. No payment will be made for loss paid or payable to the 'insured' under Part D of the policy.”

Q: Should the carrier deny the claim? I don't agree, and I don't recall any other carrier, including this one, refusing to pay an insured their deductible if the other party was uninsured.

A: Unfortunately, I agree with the carrier. The policy provision is rather clear. Plus, the cost of the damage doesn’t matter based on the clear reading of the policy—even a $5,000 property damage claim is subject to this provision. 

When collision coverage is present, the uninsured motorist property damage coverage does not respond at all as per the policy wording: "F. No payment will be made for loss paid or payable to the "insured" under Part D of the policy." The policy includes no provision that negates the collision deductible. I wish I had better news in relation to the policy language.

Incidentally, this does not appear to be standard uninsured motorist property damage wording. Be sure to review such wording closely in the specific state, paying careful attention to the exclusionary wording and the Other Insurance wording to learn how the policy applies in conjunction with collision coverage.

Chris Boggs is executive director of the Big “I” Virtual University (VU).

This question was originally submitted by an agent through the VU’s Ask an Expert Service. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.