Direct Loss under Personal Auto Policy

April 11, 2011

Our insured is involved in an accident. The accident damages two of the 4 tires on the vehicle. The manufacturer has advised that all 4 tires need to be replaced so that they are all the same size or with in specs of being the same size due to all wheel drive. The company has offered to pay for the two tires that are damaged and if the tread depth has to be reduced on the two new tires to match the two existing tires, there are services available to do so and those costs would also be covered. The insureds are demanding a new set of tires. They claim the cost of two undamaged tires is a direct cost to them, so they feel it is a direct part of this loss even though the two tires were not damaged in the loss event. What is the opinion of FC&S?