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Insurance is only required to pay fair market value of your car. If the retail value is 8,000 and you owe 12,000 on the vehicle, the insurance company will only cover the 8k If you take a loan on a car (especially one that depreciates fast) you can get GAP insurance which will cover the difference of what you owe and what your car is worth. This insurance usually costs betwee 50 and 200.00

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Q: Does insurance required to pay for car depreciation?
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Related questions

Will your car insurance pay for the car that your son hit even though he is not on your insurance?

if he is not on your insurance he is required to have his own insurance otherwise he is driving your car without insurance with or without your permission illegally so no it will be the get out clause the insurance company will use not to pay out and why should they pay for someone who has not paid for there services

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Is there a law in North Carolina that the insurance company can't pay you for depreciation of your vehicle after it was damaged by a flood?

I doubt if it is a law, but the terms of the policy you bought. Most do not pay for depreciation, just the damage. You will get the difference between what the car was worth before the flood damage and its value after, less your deductible.

What is zero-depreciation on car insurance?

As a car owner you would love to keep your car in top shape. But what if you need to get replace the bonnet repair or a headlight replace. Whatever the claim works out to the insurance companies pays up but no the full amount you have to pay the part of the claim from your own pocket. That's when zero depreciation add on helps you. Zero depreciation is an add on feature on your base comprehensive car insurance policy which when added increases your premium by about 15%. Lets you claim full cost of the repair and replacement of car parts. So, in case of a damage you do not have to worry about a huge bill.

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As a young driver you will generally be required to pay higher car insurance premiums than older and more experienced drivers however this does not means its impossible to find affordable car insurance coverage from car insurance companies.

If someone hits your car and you have no insurance will their insurance cover your car if they were totally at fault?

Yes. All registered drivers are required to hold liability insurance, which means that if they cause an accident, their insurance will pay for damages to the other peoples' cars. So, if the person does hold the required insurance, and is entirely at fault, your damages will be covered.

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To have an idea of how much insurance you should pay visit

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You own your car it was totaled Should you let the insurance company have it after they pay you?

This depends on what the settlement covers I have required the insurance company to allow me to retain ownership, this reduces the settlement. Or the if you do not specify that this is what you want the insurance company gets the car.

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