Police are often called to the scene of automobile accidents to help with any issues that may occur. The most common issue is correctly determining which of the involved parties is at fault. Once a decision has been made, a ticket is usually administered to the responsible party. There are many instances when the police do not determine the fault. When this is the case, the insurance companies are left to make this decision by comparing notes taken regarding the accident. There are different extents of fault ranging from 25/75, 50/50, to 100%.
A perfect claim is where Party A is completely at fault meaning Party B is in no way liable. When this is the case, collision coverage of Party A will be used to repair his vehicle, along with a deductible. If Party A purchased loss of use insurance, a rental car is provided. This usually increases the insurance premium the next time the insurance is renewed.
In this scenario, Direct Compensation coverage will pay for the auto body repair or other collision repair work needed for the vehicle of Party B, without a deductible charge. Whether or not Party B has rental, a rental car is provided. Unlike Party A, the claim does not affect the future insurance or increase the insurance premium.
