Auto Insurance Claims: COVERAGE, COVERAGE

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?

Answer
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
http://www.quirogalawoffice.com/
http://www.spokanebankruptcy.org/