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Auto Insurance Claims/COVERAGE
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Question
IF I BOUGHT 15,000 DOLLARS COLLISION COVERAGE ON MY VEHICLE AND I TOTALED MY CAR IN AN ACCIDENT, HOW MUCH WILL MY INSURANCE COMPANY PAY FOR THE CAR IF I'M STILL PAYING ON THE CAR? ALSO IF THE CAR COST LESS THAN THE $15,000 COVERAGE?
Hello Alena,
They would probably pay the actual cash value of the car (you have to see the exact policy language).
The actual cash value is often defined in the policy, and that definition more likely than not depreciates the car to it's current fair market value.
That value will not depend on how much you owe in the car.
If you have a stated value policy (the $15,000 likely acts as a limit, that is likely the MOST they would pay in case the actual cash value exceed that number.
Please see: http://www.auto-insurance-claim-advice.com/actual-cash-value.html
I hope this helps.
Good Luck
Anne
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Answers by Expert:
Anne
Expertise
Auto insurance claims regarding vehicle accidents, insurance coverages, auto policies, bodily injury claims, pain and suffering, injury settlements and negotiations.
Experience
I am an adjuster for injury claims and property damage claims for over 5 years (still working there). I have worked for personal injury attorneys helping consumers get a fair treatment and I am passionate to help others with their vehicle accidents.
Education/Credentials
B.A. Economics/ Political Science
Awards and Honors
I was the top settling claims adjuster at the Insurance Company that I worked for.
I am the co writer of http://www.auto-insurance-claim-advice.com a website dedicated to help consumers document their auto claims and navigate the complex claim process.
Past/Present Clients
I work with injury lawyers working on high dollar settlements and jury awards for pain and suffering see: Spokane Law Office.
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