i'm confused -- you seem to be saying two opposite things, that it only applies when making a claim against your own policy, and that it applies when making a claim against another person's policy. i'm not trying to be an ass, but i don't understand what you're saying.

although not in the context of someone hitting you, i know of at least one case where a friend of mine had his bike ripped off from his house and was only able to get "actual value" due to the fine print of his renter's policy. i don't personally have experience with accident situations where the other person's insurance is the one paying, so i don't know about all that.