Uninsured Motorist vs. Collision Coverage
Recently, my parked car was damaged by a tow truck driver who stalled while driving stick, leading to a chain reaction collision. The tow truck rolled backward and crashed into the car in front of me, which then slammed into my vehicle. Unfortunately, the driver’s insurance wasn’t active at the time, so my insurance company suggested I file a claim under my collision coverage, which comes with a $500 deductible. They offered to handle the repairs first and then pursue the tow truck driver to recover the costs and my deductible.
However, I also have uninsured motorist coverage, which my insurer didn’t mention initially. When I called them to inquire about it, they claimed their “system was down” and promised to call me back once it was up again, which struck me as strange.
My question is: Would it be more advantageous to use my uninsured motorist coverage instead of collision? This way, I wouldn’t have to pay the deductible upfront or deal with the hassle of trying to get it back from the tow truck driver, who seemed quite untrustworthy at the scene, as did the company itself. It could make recovering the deductible quite complicated.
Thanks for any advice!
It sounds like you’re in a bit of a tricky situation. Given the details you’ve provided, opting for your uninsured motorist (UM) coverage might be the better route for a few reasons:
No Deductible: As you pointed out, using your UM coverage would likely allow you to avoid paying the $500 deductible that would come with your collision coverage. This can save you some money upfront.
Less Hassle: The process of pursuing the tow truck driver and their company for reimbursement of your deductible can potentially be long and frustrating, especially if they have been shady so far. Using UM coverage might allow you to avoid that hassle altogether.
Shady Circumstances: Since the tow truck driver and the company have been less than forthcoming, going through your UM coverage may provide you with a more straightforward resolution without the need to deal with a potentially uncooperative party.
Future Premiums: Using your collision coverage may affect your premiums down the line, especially if it results in a claim. Depending on your insurer’s policies, UM claims can sometimes have a different impact on your rates.
That said, it would be wise to discuss your options thoroughly with your insurance representative once their system is back up. Make sure you fully understand the implications of each choice, and don’t hesitate to ask if there are any other options that might be available to you. Good luck!