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Not as such. What you owe on your vehicle has nothing to do with the auto insurer's liability, except to the extent that the lienholder is usually named on the policy as a loss payee.

If your vehicle is deemed a total loss in a covered incident under comprehensive such as a fire, theft, etc. then the insurance company will pay per the terms of the policy. As stated in the policy, the insurance company has the option to repair, replace, or pay the actual cash value of your vehicle. Actual cash value will be paid if the reasonable cost of repair exceeds a stated percentage of the actual cash value of the vehicle. That percentage is usually set by state law. Actual cash value roughly equates with market value of a similar vehicle in similar condition and similarly equipped.

If the vehicle is declared a total loss, the insurer will pay the lienholder first and if the car is worth more than the loan balance the remainder will be paid to the insured. If the loan balance is more than the value of the vehicle, and thus, what the insured pays, the insured is responsible for the balance. then you have a problem. The company will pay the entire amount to the loan company but then you will still owe the balance to the loan company or bank.

One of the ways to protect yourself from being responsible for the difference between what the insurer pays and the balance on the loan, is through GAP insurance. It is a separate policy, for a separate premium. It pays the difference between the insurance settlement and the amount remaining on the loan. It is usually offered when the car is purchased and financed, but can generally also be obtained after the fact from a property and casualty insurance agent.

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Q: Does auto comprehensive insurance pay off and replace auto?
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Does Comprehensive auto insurance pay off and replace the car in the event of auto theft?


If a tornado rips the chimney cap off a neighbor's house and it lands on your car hood does homeowner's or auto insurance pay for the damage?

Your auto policy will cover it as a 'comprehensive' loss (if you have comprehensive coverage).

Does homeowners insurance cover a car stolen off your property?

No, Never. An auto theft would have to be covered by the vehicle owners comprehensive auto insurance policy. A homeowners Insurance policy is not liable for the theft of a vehicle. that's what Auto Insurance is for. If an Auto Owner chooses not to purchase a Comprehensive auto Insurance Policy then they assume the risk of a total loss in the event of a theft. The vehicle owner can not seek to shift liability to another person simply because it was on their property when the vehicle was stolen. If this were the case then every time a car is stolen from the parking lot of a store or shopping mall people would expect that business or property owner to pay for their loss.

Can you get auto insurance off the internet?

Of course you can

Do you have to have insurance to purchase an auto?

You do need to have insurance to actually purchase an auto. You will however need auto insurance to drive the car off of the lot. Insurance is also required prior to registering a vehicle.

Snow fell down off your roof and damaged the hood of your car Will your full coverage auto insurance cover the cost of new hood?

Yes, comprehensive coverage should pay for incidents such as this.

Do auto accidents drop off report in three years for auto insurance?


How long do you have to get auto insurance after purchasing a car?

You must have auto insurance before you drive the car off the dealer's lot.

Will auto insurance cover the use of ATVs too?

I am unsure if Auto Insurance will cover ATVs on the road, or off road.

Does comprehensive auto insurance pay off and replace the vehicle in the event of auto theft?

Comprehensive is the coverage that would pay for the theft of a vehicle. The policy spells out the insurance companies options on payment. On any claim, the insurance company has the option to repair, replace, or pay the actual cash value of the vehicle in the event of any loss. Generally they do not replace a vehicle but pay the actual cash value less your deductible then allow you to purchase a replacement vehicle. As a matter of full disclosure, I own and operate a small Independent Insurance Agency and have for the part 22 years. Before that I worked as an agent for a direct writer insurance company. As for the payoff of the loan on the vehicle, the insurance company will have to issue payment to the bank up to the amount owed on the vehicle. The amount they pay has nothing to do with the balance on the loan. If you owe less than the ACV then the balance will be paid to you. If you owe more than the ACV then you will have to pay the difference to the bank or finance company.

Where is the headquarters of Commerce Auto Insurance?

Commerce Auto Insurance is located in Webster, Massachusetts. Commerce Auto Insurance is located in the vicinity of exit 2 or exit 3, off of interstate 395.

What insurance coverage covers you if you are run off the road?

Your collision and comprehensive cover your vehicle.