Another insurance question?

Question

My policy lists lesser of actual or stated value. I have full coverage, can anyone tell me what will this actually cover.
This is listed under comprehensive and collision. Does this coverage include any loss to the car?
I went to the insurance agency yesterday, and the idiot agent couldn't answer any of my questions/concerns. Instead she gave me a number to call, the same number which I already had. I've tried calling them, and they keep transferring me back and forth to different departments.
My question is, if my car is Totaled/stolen/flooded which happens a lot in my area. With the information listed on my policy will I get the amount actually listed. I need to be sure I have sufficient coverage. Thanks in advance for your advice.

Do you have to pay a deductible if a car is totaled/stolen/flood damaged? Thanks.

Answer 1

OK, that's a stated amount policy. THose are crap, I won't sell one, particularly BECAUSE of the "lesser of acv or stated amount".

NO ONE can tell you what "full coverage" covers, because it's not a real insurance term. You'll have to read your policy, to see EXACTLY what's covered.

Collision is, you hit something with your car, or something (another car, a bike, a baseball, a shopping cart, a flying saucer, not an animal) hits your car. Or you roll it over. Comprehensive is fire, theft, vandalism, broken glass, hail, falling objects (like a tree limb) or hitting an animal (and there'd better be blood and fur, or it's a collision).

You need a new agent. If they can't tell you what collision and comp mean, they're either too stupid or too lazy to be your agent.

Likely, your car isn't worth the amount listed. Go to www.kbb.com, and look up private party value. You can't include customizing equipment/improvements to the value of your car, unless you pay for them seperately - and LIST them seperately. So you only get the LESSER OF. Not the greater of. You're probably going to be unhappy come claim time, with that stated value bit.

Answer 2

Most auto policies will cover the actual cash value of your vehicle. That most commonly means what your car is worth on the open market. What would your car sell for that is the actual cash value. It is what a reasonable purchaser would pay to purchase your car It is not based on what you still owe on the car.

Stated Value is used in more specific situations where you perhaps have customized a car extensively, It is an antique or is a rare vintage car. On your everyday driver you would not be stating a value.

Actual cash value of a car is often a point of contention between the adjuster and the customer because the customer often has an inflated idea of the car's value and the adjuster is looking to get out of the claim for as little as possible.

Answer 3

What it means is that if your car is worth $5000, and you've listed $8000, then you'll get $5000.

Conversely if your car is worth $8000 and you've LISTED $5000, you'll get the $5000.

Bad idea.

Get a policy that gives actual market value. With what you have, if you're not clue-y enough on cars and you under value your vehicle, the insurance company takes advantage of that!

Answer 4

Good answers above. Just to get to your deductible question. Yes, you will still need to "pay" the deductible. If they deem the car a total loss, you will get the settlement amount (as described above) less your deductible; you should not have to actually send them (or anyone) a check for the deductible amount but it still applies.