Expert: Charlie Barone - 2/22/2010

Question
I have a vintage car the I repaired in my garage. I replaced the carburator and when I went to start the car, it caught on fire. I have comprehensive coverage for the car, although it doesn't cover the actual value. Will I have trouble with my insurance company making this claim?

Answer
I'm not sure what you mean by your policy not covering the value of your car. There are two types of coverage you might have purchased, the first being a stated value policy in which you determine the value of your car up front (supported by an appraisal) and that will be the payout you would get in the event of a total loss. Or you could have an actual cash value (ACV) policy, which would pay you the cost to replace or repair it (whichever is less) based on the cost to replace the vehicle with one of like kind and quality in the event of a loss.

Check your policy to see which type of coverage you purchased and be prepared for whatever your insurance company comes at you with with respect to an offer. And remember that their figures they throw at you are just that---offers in settlement of the claim. You are under no obligation to accept them and there are standard machinations in the policy language to resolve a dispute between what they offer and you accept.