Auto insurance damage

Auto insurance property damage

The damage caused to any kind of vehicle called as property damage in auto insurance world. There three general types of damage that are covered by auto insurance company: collision, comprehensive, and uninsured/underinsured motorist. Last one is covered not always and depends of the insurance company’s offered conditions.

If your car is damaged in an accident, and you have appropriate auto insurance, your auto insurance company pays for repairs your vehicle and even could cover almost total cost of your car. In case if car is totally lost and the auto insurance company considers the same than it usually pays to the insurer the actual cash value (ACV) for the car.

The ACV concludes the cost to replace the car with a similar one as likes kind and quality, etc. But auto insurance company subtracts a value according to the machine state as for the total vehicle’s depreciation including age, wear and tear.

Auto insurance damage

 

Decision to pay total price for the car Alabama auto insurance company takes exterminating basically on the coat of repairs and how worth is the car. Any car could be considered totally damaged (on auto insurance point of view) if the repair costs is over than a certain percentage of the its worth. This amount of percentage is varying for different auto insurance company, but usually it is in range from 51% to 90%.

Auto insurance damage

If you are not agreed that your car it totalled any ways you will pay actual cash for it. Auto insurance in Alabama covers this type of damage as “total” auto insurance coverage. And if you would like to prevent your car from auction off and chopping up for parts as in it is your lovely car and never you would like to be separated with it. Actual cash value not seems like an equivalent to you, as it should be auto insurance for your car. So auto insurance company considered your car totalled, but you are not agreed. Signing up a contract with your auto insurance company make insurer pays for the car worth cost appropriate for it.

See also  Insurance policy def

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