Auto Insurance Claims: Coverage after car is totaled, coverage after car is totaled

Question
Hi Ron,

Thank you for volunteering to answer questions!

Last week, both our cars were severely damaged in a hailstorm here in Texas. They are both older cars (2002 and 2000) and were dented up pretty badly but are otherwise in very good condition and will be drivable for many more years. Our insurance company totaled them, since it would have cost more to repair them than they are currently worth, and we took the checks and kept the cars.

My question is about collision. Is there a way to continue collision coverage even though the cars have been totaled? Might another insurance company be willing to accept the cars as is and sell us collision? Better yet, is there a way to work something out with our current company, with whom we are pleased?

Thanks for your help,

Cindy

Answer
Hello Cindy,

Any insurer should be willing to insure your cars even with old damage. However most insurers will inspect the car to make a note of preexisting damage. They also will ask on the application if there is any old damage.

Since you like your insurer, just ask your agent if you can put collision on them and see what he says. If he says no, then check around.

Now here is my practical advice, if your insurer already sees your car as a total loss from the hail damage, and then your car was stolen or smashed to nothing in an accident, your insurer would pay you nothing for the car, even though you paid the premiums. So in my opinion you would be wasting your money on collision coverage, and your agent and insurer would be doing you a disservice by not telling you this.

At this point, drop the collision coverage. However, keep the "UMPD" coverage. That should not run over $10.00-15.00 for 6 months and will usually provide up to $3,000.00 for damage to your car if you get hit by an uninsured or underinsured car. You have a better chance of getting paid for damage to your "already damaged" car as a "claimant" than as an "insured". (Go to the Insurance Claim Glossary page at http://insuranceclaimhelp.org for detailed definitions of those quoted terms).

If you have any question as to whether you got a fair settlement for your vehicles, consider the product "Total Loss Auto For Insureds" at UClaim.com.