10
Dec
2007
Car Value, Auto Insurance and your Counter Measures
Part III – Getting the Right Value out of an Accident Insurance
Getting the right value for your car through your Chicago auto insurance in times where you get involved in an accident is nothing new to many auto insurance policy holders. It is of utmost importance that you understand everything about your auto insurance policy and know how to handle this kind of situation just in case that you get caught in it. Remember that there is a big difference between simply knowing your auto insurance and understanding it and its policies because this will help you get in to the right path when instances related to getting the right value for your car and auto insurance happens.
How Auto Insurance Companies Get the Value of your Car
In case that you get involved in an accident, you must know that it is the sole responsibility of the auto insurance company to provide you with the estimated amount of money that would equate the purchasing equivalent of your car (market value). While in this process, expect the worse that could happen as most auto insurance companies don’t use the Kelly Blue Book or NADA where the specific standard values to base your car’s value were found. Auto insurance companies would mostly rely their computation based on a self proclaimed auto insurance computations and formulas with which they base every computation that they make out of payments made to car insurance policy holders.
What Most Auto Insurance Companies Consider in Computing Car Value
Valid information reveals that different auto insurance companies may often consider getting quotes from various dealers that aren’t the considerable-type for an auto insurance policy holder such as you. This is what I am referring to as “not the true value of your car” which in simple terms would mean that you will not really get the exact true value of your car when you get involved in an accident and totally ruin your auto beyond use.
In this case, you might want to consider getting quotes from a third party yourself just to make sure that you will have an edge over the auto insurance company’s own estimates which will naturally fall as under estimation. Normally, these quotes would try and consider different major factors with regards to auto insurance estimates for a car’s true value. Such factors would be, the mileage of your car, condition, the repairs made during it lifespan plus the added accessories incorporated for improvement of physical appearance and service and more…
Counter Measure for the Auto Insurance Policy Holder
As a counter measure for you to avoid getting under estimates for your car’s value as the auto insurance policy holder, you might want to take chances at getting your own quotes from a third party based on the different factors (mileage, repairs done, condition of car…) with which they may base their computation. Remember that it is always better to be prepared than to be sorry in the end especially if we are talking about high value cars. This would be most beneficial to you because if the auto insurance company would decide to base their computations from the said factors, then, you may submit your own quote and avoid from getting caught empty handed. Remember to keep all your receipts from repairs to additional accessories to avoid dispute. As a last tip, you must be sure that everything agreed upon by you and your auto insurance company as the settled amount will include sales tax because this will later on serve for your purchase of your replacement car.
Tax and the Diminished Value Compensation in the Settled Amount of Payment
Make sure that everything that the auto insurance company will pay you as settlement will include tax. This will help you avoid unnecessary taxes that might further increase your replacement car costs when you decide to buy yourself another. This is where mostly forgotten and usually left out by insurers not knowing that they will later on benefit from this particular aspect.
In case that you get into a car wreck and upon investigation that your car can still be repaired, what you will need is the diminished value compensation. In auto insurance, the diminished value compensation pays you for whatever loss of market value that your car sustained due to the accident or repairs done. There is a particular phrase I know of that states that “Once your auto was wrecked in an accident, it is deemed worthless even if it may be repaired to almost a full restoration state.”
This is true because any car owner would totally agree that people would not risk buying a car that has been in a major accident. If this is the case, it will also affect your car’s market re-sale value therefore making your car useless/worthless in terms of a re-sale. It won’t take much of your time to check for the auto insurance company and see of they offer diminished value compensation just before purchasing their auto insurance coverage.
Paying Too Much For Your Auto Insurance? Click Here & Find out!