Five Questions That Every Car Insurance Buyer Should Ask! Blog 4
What happens if your car gets totaled? How much will your insurance cover to take care of the loss? This is an issue that you must address when you first purchase your policy. You may be unpleasantly surprised if you do not. You need to know whether your insurance company will pay the actual cash value or the agreed upon value. You may not know that “actual cash value” refers to your car’s depreciated value at the time that it was totaled.
With an agreed upon value, the value gets agreed upon when you renew your car insurance policy each year.
Generally, this is the best option, although it may cost about one hundred dollars extra. That is way better than insuring your car for $30,000 in February only to find out that, come August, the actual cash value is down to only $21,000.
Add comment August 4th, 2009