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When an auto is totaled and the insurer takes the auto and pays the insured the actual cash value of the car at the time of the loss this is an example of?
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∙ 13y ago
Total loss payoff
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∙ 13y ago
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What does it mean the insurance company makes a full payment minus a patient deductible?
When one buys an insurance policy, one of the choices that is made is the amount of the deductible. A deductible is the amount of money that the insured elects to pay toward a covered loss. Stated otherwise, the insured is "self-insuring" for the amount of the deductible, such that the insurer's obligation to pay is not triggered until the deductible is met. One it is, the insurer pays the amount of the remaining covered loss. The insurer's actual payment may also be subject to certain exclusions (things not covered) or limitations (payment is made only to a stated amount, even if actual charges exceed that amount). In the realm of health insurance, co-payments are also common. A co-payment is the percentage of the covered charge for which the insured remains responsible. An example would be that the insurer is responsible for the payment of 80% of the charge, and the insured is responsible for the remaining 20% in addition to the deductible. In general, premiums are lower for health insurance that carries a higher deductible and co-payment, because the insurer bears proportionately less risk for a covered occurrence.
What if your car is totaled?
Get a new car. == If someone hit your car you will be paid the actual cash value of the car. If you totaled the car and had collision coverage you will be paid actual cash value, too.
What is the meaning of Insurance is the subject matter of solicitation?
'insurance is a subject matter of solicitation', which essentially means that insurance has to be requested or asked for, not sold. - Souvik Maitra To fully understand the meaning of this cryptic phrase, take a look at the wording of any insurance policy that has been issued by an insurance company to a customer. Every insurance policy says that the insurance company is providing you insurance against a risk on YOUR request/solicitation, i.e. the company agreed to sell you its insurance policy after you solicited or asked for such a sale. In legal terms, insurance is a product that should not be pushed by a seller, but should be pulled by a buyer. That doesn't happen in real life, though -- Kapil Bajaj
Renters insurance Vancouver Canada?
The cost varies depending on the coverage sought and the value of the items to be insured. It also depends upon the insurer, your loss history, location of the property, and whether you wish actual cash value or replacement value coverage.
What are the difference between the marine Insurance policy and insurance certificate?
A Marine Insurance Policy is the actual contract of insurance between the insurer and the insured. Most of these policies are what is being referred to a Open Marine policies which means that the policy covers many shipments under one policy. An insurance certificate is issued for a particular shipment that the insured declares under the Open policy. The insured does not issue a policy for each individual shipment.
The difference between indemnity and non-indemnity insurance in insurance law?
When indemnity (often called short-term) insurance contracts are concluded the insured is entitled to recover the actual commercial value of what he has lost through the happening of the insured event, be such event damage to property, fire, theft, public liability or marine insurance. In non-indemnity insurance the sum which the insured is entitled to receive from the insurer does not necessarily bear any relation to the actual loss, if any, suffered by the insured. Life insurance contracts, personal accident and sickness insurance are examples of non-indemnity insurance. Rgds max_jaret@yahoo.com
What to do if my car is hit on a college campus in MI. Insurance company says the car is totaled and will pay 1000 repairs are approx 1800. Can I sue the driver for the 800?
You have not stated if it was the other party's insurer or your own that offered $1000. If it was the other party's insurer, the insurer will require a release of itself and its insured's further liablity as a condition of payment. The reason for that is because the insurer has a duty to protect its own insures from further liability. Therefore, absent very unusual circumstancesm you will not be able to sue for the balance if you accept the offer. You have the option of rejecting the offer. If you do that, you may sue the other party for negligent operation of the vehicle. It would be your burden to prove (1) negligence (fault) and (2) damages. You would need to prove your damages by having the mechanic who gave you the $1800 estimate come to court and textify as an "expert witness". The person whom you sue would probably be defended by an attorney appointed by the insurer, and would defend both the issues of fault and damages. If the insurer contends that your car was totaled, it would have to show that the cost of repair exceeds a stated percentage of the actual cash value of the car. That percentage is usually set by statute and varies according to the state whose law applies. The insurer would have to prove the actual cash value of the car was $1000. You could present evidence that the value was more, but you would need an expert witness on valuation (such as a car dealer) to testify in order to do so. This is not to be relied upon nor is it intended as legal advice.
Should you cancel your auto insurance after an accident if your vehicle has been declared a total loss?
Often, cars are totaled because the cost of repairs exceed a statutory maximum of their actual cash value, thereby requiring the insurer to total the car. Sometimes, the car is repairable and the insured wishes to keep the salvage and have the car repaired. In that case, a "rebuilt" or "salvage" title will be issued upon the completion of repairs, so the insured may want to keep the insurance in force. Likewise, if the insured gets a replacement car, the same policy as he/she had before can apply to the new car--although the specifics of the new car (make, model, style, VIN) will have to be endorsed onto the existing policy. The insured may also want to change one or more of the coverages either in type or amount.
What if the insurance company won't give you what it takes to fix the car?
You can sue them for the balance between what has been offered and the reasonable cost of repair. In that sort of a lawsuit, it is necessary that you retain an "expert" witness, such as an experienced auto body repair person to prepare an estimate of the cost of repair. Unless the case is settled before trial, that person would have to brought to court to testify within the scope of his/her expertise. It is then the judge's job to determine whether your expert or the insurance company's (usually an adjuster) is more reasonable/correct in their assessment of damages. When a matter goes to trial, however, it is often useful to get a lawyer to assist, as there are rules of evidence that a layperson may not be familiar with. In turn, this may become complicated and costly than the amount in controversy justifies. All of that said, most states require that an insurer declare a vehicle to be a "total loss" when the cost of repair exceeds a stated percentage of its "actual cash value" (ACV). The ACV is roughly equivalent to the market value of a vehicle of like kind and quality, similar mileage, equipment, and other characteristics. If the vehicle is required to be totaled, the insurer will pay the ACV to the insured; if there is outstanding financing on the vehicle, it will pay the lienholder's interest, with the balance going to the insured. The insurer will apply the policy collision deductible to whatever is paid. In return for the payment of the ACV, the insurer generally gets to keep the remnants of the vehicle (salvage). It then sells the salvage for what it can get as a means of recouping part of its payment. The insured may have the option of keeping the salvage; in that event, its value reduces the payment made by the insurer to the insured.
Can auto body shops fix a totaled car?
The definition of a totaled car is when the repair cost of the vehicle exceeds the actual value of the vehicle. Hence, although it is unadvisable, it is possible for an auto body shop to fix a totaled car, depending on how severe the damage was.
What happens if car insurance does not cover full amount of accident?
(In the UK)I'm guessing you mean on your own vehicle? i.e. your car repair bill is for £5000, but your vehicle is only worth £3000 (amounts for illustration only)?In that situation, the Insurer would 'write off' the vehicle - essentially declaring it as unworthy of repair. They would then pay out to you the £3000, assuming that £3k is their valuation of the car and take ownership of it themselves for scrapping. This is regardless of what you told them it was worth when you took out the insurance. Conversely, if you told them it was worth £2500, and the car is worth £3000, they will only pay up to a maximum of £2500 - sneaky so & so's!!!If you feel that the damage is only cosmetic, or you are a mechanic yourself, and feel that the car can be repaired cheaply, then you can always buy the car back off them - usually for a couple of hundred quid.If however you meant other people's vehicles, then I believe it is the same as public liability insurance, and covers up to £1 million. Should be enough for most vehicles...Outside of the UK I'm afraid I don't have a clue!ANSWERIn the US, if the vehicle were itself damaged, once the deductible is paid by the insured, the insurer pays the reasonable cost of repair. Recently, it has become common for insurers to have preferred repair facilities that work with the insurer on cost of repairs. This is similar to managed care in the health insurance arena.In most states, it is also the law that if damages exceed a stated percentage of the actual cash value of the car, the insured must declare it a total loss. The insurer then pays the insured the actual cash value, less the policy's collision or comprehensive deductible. The insured if often given a choice to either keep the salvage and, perhaps, pay to rebuild the vehicle, or to sign title over to the insurer. If the insurer keeps the salvage, the salvage value is deducted from the amount paid to the insured.In cases where the insured is at fault for a collision and a claim is made by a third party for property or bodily injury damage, most states require the insurer to settle the claim within the insured's policy limits if it possible to do so. If it unwilling to pay the value of the claim when it knew or should have known that the claim was in excess of policy limits, and the claimant will settle for policy limits, the insurer will have exposed the insurer to an "excess verdict". That is, in most states, considered "bad faith". In that situation, the insured can sue the insured for additional damages. Alternatively, the insured can assign that claim to the claimant who may sue the insurer for the difference between policy limits and the amount of the claim.Note that state law governing bad faith may differ depending the jurisdiction, and that this is intended only as a general discussion.
How is the actual cash value determined if a car is totaled?
I think it depends on your insurance company. A friend totaled a car and they based the value of 3 or 4 values. Things like Kelly Blue Book and such.
