Deductibles and the BAP

July 2, 2014

Our insured lost control of his owned tractor which was connected to his owned trailer. Both units sustained damage. Both units were listed on the policy with a $1000 deductible. The insured has symbol 7 for physical damage coverage.

We applied the $1000 deductible to both units and our insured's agent is questioning us. Are you aware of anything in the BAP that would waive one of the deductibles? I checked with several co-workers and no one really knew for sure.

New Jersey Subscriber

The BAP states that “for each covered auto, the payment will be reduced by the applicable deductible shown in the declarations”. So, based on that language, since both the tractor and the trailer were each listed as a covered auto, applying the deductible to each unit is the proper approach.