A knock for knock agreement is a type of arrangement between motor vehicle insurers. Under this agreement, each insurer is responsible for covering the repair costs of their own policyholder's vehicle after a collision, regardless of who caused the accident. This type of agreement is typically applicable only when both vehicles involved are insured for their own damages.
Knock for knock agreements are primarily used in the field of insurance law, particularly in relation to motor vehicle accidents. These agreements streamline the claims process by allowing insurers to settle claims without determining fault. This can reduce disputes and expedite repairs for policyholders. Users may find relevant legal forms through platforms like US Legal Forms, which offer templates tailored to insurance claims and agreements.
Here are a couple of examples of abatement:
Example 1: Two cars collide at an intersection. Car A's insurer pays for the repairs to Car A, and Car B's insurer pays for the repairs to Car B, regardless of who caused the accident.
Example 2: A driver backs into another vehicle in a parking lot. Each driver's insurance company covers their respective damages without determining liability (hypothetical example).
Examples of state differences (not exhaustive):
| State | Knock for Knock Agreement Applicability |
|---|---|
| California | Commonly used in auto insurance policies. |
| New York | Less common; insurers may prefer fault determination. |
| Texas | Often included in standard auto insurance agreements. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
If you are involved in a motor vehicle accident and have a knock for knock agreement, follow these steps:
Browse our library of 85,000+ state-specific legal templates.
| Attribute | Details |
|---|---|
| Typical Use | Motor vehicle insurance claims |
| Coverage Requirement | Both vehicles must be insured |
| Fault Determination | Not required under this agreement |
Under a knock for knock agreement, both insurers cover their own policyholders' damages, regardless of fault.