[KSilver2000]

I have a couple questions for the insurance experts out there.
Apologize in advance for making it long.

Recently, someone ran into one of cars and AAA (my insurance carrier) deemed it a total. I settled by accepting to take a cash payment. It has been decades since someone in the family has had a totaled car, and so I may just not be understanding some basics regarding compensation.

1. I received a settlement check for value of car MINUS deductible, which is agreed I am supposed to receive since other party is at fault. However, AAA says they need to wait until subrogation to give me my deductible, and they can’t tell me how long that will take.

2. Premium proration: For simplicity of explaining the (possible) issue, let’s say I had 2 cars (A and B), the premium for both were $1,000 each, and I was 6 months into this year’s policy at date of car A total loss. Logically, I believe I should get a refund of $500 (half year). However, AAA is saying different. The premium for car B goes up to $1,500 because of no multi-car discount. Fine. But, they are calculating the refund for car A premium based on the following: Since car B’s rate would have been $1,500 without multi-car discount when policy was renewed 6 months ago, car A’s premium was effectively only $500 for the full year. So, they are refunding only $250 (6 months remaining).

Do these make sense?

I already argued with 2 different supervisors and have gotten nowhere.

Thanks very much!

[XMetal]

One possible solution is to cancel your policy of car B and go somewhere else so you can get refund half of your $1500

[eluded]

Originally Posted by KSilver2000

Do these make sense?

I think so. Sounds like one of those math problems we had back in the day.

If I recall with math even if you arrive at the wrong answer as long as you explained the solution you got partial credit.

You paid $2000 for insuring the two cars for one year. At the six-months one of the vehicles was totaled . 1/2 a year times $2000 equals $1000.

Six months into your one year insurance you have $1000 left. Logic would say you might be entitled to $500 but the math gets fuZzy.

The insurance company now says if you insured one vehicle it would've cost $1500 a year.

$1500 a year divided by two equals $750.

$1000 at the six-month mark -$750 equals your refund of $250.

[BayE30]

i recently had my bmw totaled by AAA, but I immediately (within a month) replaced with another bmw, so this whole situation you are having was a non-issue as the premium I paid transferred over to the new bmw policy.

[JohnnyCanuck]

The subrogation answer is completely correct. AAA will attempt to recover from the liable party's insurer their repair costs and your deductible. To the extent they are successful, you are (in other words, if they recover 100% of their repair costs, they'll get 100% of your deductible which will be reimbursed to you). Assuming no dispute between insurers about fault (and they all use the same "fault chart" so unless there's a dispute about facts, there shouldn't be an issue), you'll get your money when they get theirs.

As for the second, that is the right calculation, but presumably if you insure the replacement vehicle through AAA, that should adjust it back in your favour.

[KSilver2000]

Thanks everyone for your input.

Yes, I acknowledge that this argument would be somewhat moot had I replaced the loss with another vehicle right away. But, we decided we don’t really need another car for now because work pays for public transit. So, trying to get a proper refund (in my view) seems challenging with their “fuzzy” math.

[eluded]

Originally Posted by KSilver2000

Thanks everyone for your input.

Yes, I acknowledge that this argument would be somewhat moot had I replaced the loss with another vehicle right away. But, we decided we don’t really need another car for now because work pays for public transit. So, trying to get a proper refund (in my view) seems challenging with their “fuzzy” math.

Their fuzzy math is correct, please see my post above.