[jfd349]

If your car is totaled in an accident, then insurance will pay you for the value of your car at the time of the accident. Let's assume that you paid cash for your car and there is no lien. Using a value of $35,000 as retail cost for your vehicle, that is what the insurance company will pay. If it costs $40,000 to actually replace the vehicle, then you have to pay the $5,000.

Does anyone know if there is any insurance company or carrier that offers coverage for this $5,000 (and not GAP insurance since the example is no lien)? I have asked around and nobody that I asked thinks this coverage exists.

[teknochild]

no because then people would just wreck their cars in order to get new ones

[rit]

I remember my Allstate rep telling me about an option that does "full replacement value" under certain conditions. I don't remember the details, but I do remember that I didn't think it was good enough to buy it.

That's probably not much help, except to say "Ask Allstate - I think they have a product like you requested".

[jfd349]

Originally Posted by rit

I remember my Allstate rep telling me about an option that does "full replacement value" under certain conditions. I don't remember the details, but I do remember that I didn't think it was good enough to buy it.

That's probably not much help, except to say "Ask Allstate - I think they have a product like you requested".

Thanks, I'll see if it is worth the cost.

[Ninjaneer]

I asked about that and the Geico rep in FL basically said something about an obscure policy which is NOT covered or approved by law in the state of FL.

[ahnh77]

the insurance company needs to give you enough to cover the actual cost to replace the vehicle in your area....they have to provide you proof of the amount they are "offering"..remember you have to accept the amount....

example....a person bought a brand new bmw...but after 7 months...totals the car....since the car is only 7 months old....the closest vehicle would be a another new vehicle...so the insurance company must give you almost what you paid for you vehicle to get a new one...

GAP insurance is different...example....you did a zero downpayment....6 year payment plan....after having the vehicle for 2 years...let say you total your car.....you bought it for $45,000...but after 2 years..the market value is only $25,000......but you owe $30,000 in your loan...so insurance pays you $25,000..GAP insurance pays the $5,000 difference...

[ahnh77]

if the amount they are offering you is definitely not enough for you purchase a vehicle that closest match your previous vehicles in your area....you need to appeal the insurance company's decision....and if they still refuse....file with the department of insurance...

some insurance company basically will low-ball customer..hoping that customers will just take the money...or not take the time to appeal....

[musc]

Originally Posted by jfd349

If your car is totaled in an accident, then insurance will pay you for the value of your car at the time of the accident. Let's assume that you paid cash for your car and there is no lien. Using a value of $35,000 as retail cost for your vehicle, that is what the insurance company will pay. If it costs $40,000 to actually replace the vehicle, then you have to pay the $5,000.

Does anyone know if there is any insurance company or carrier that offers coverage for this $5,000 (and not GAP insurance since the example is no lien)? I have asked around and nobody that I asked thinks this coverage exists.

I believe they just pay you the NADA retail based on average mileage. Usually retail value is more than enough to purchase an equivalent vehicle. Most people end up doing better than if they had sold the car themselves or traded it in. From what my carrier told me, those 'new car replacement' clauses usually only apply to a vehicle purchased in the past 30-90 days. If its older than that, expect to take a loss if you try to take your payout and purchase a brand new vehicle.

It would be an odd situation to wear your retail payout would not be enough to buy an equivalent car (same model year, options, etc). Don't expect to find a policy to pay you 5K extra so you can move up a model year, etc.

[musc]

Originally Posted by teknochild

no because then people would just wreck their cars in order to get new ones

Only those crazy enough to risk jail time for insurance fraud.

[Bimmerista]

Well in Canada (Quebec) you can get replacement value coverage-it only applies to the first two years of ownership and it does cost extra, but if it is a total loss within the 2 first years, insurance pays whatever it takes to get the same car. If the same does not exist you get the closest one with higher specs (not lower).

[canuck335i]

Originally Posted by Bimmerista

Well in Canada (Quebec) you can get replacement value coverage-it only applies to the first two years of ownership and it does cost extra, but if it is a total loss within the 2 first years, insurance pays whatever it takes to get the same car. If the same does not exist you get the closest one with higher specs (not lower).

euh, I wonder how come you know so much about this

[DowntownBMW]

Originally Posted by canuck335i

euh, I wonder how come you know so much about this

my insurer has similar coverage, you can take a 2 or 5 year coverage for total loss, they will get you a new vehicle...if you totalled a 2007 two years later, they will get you a 2009..
dont know what that will do to your premiums though..
there is extra charge for the coverage of course

[G-Mach1]

Here in Canada (Alberta) you have a Coverage called Replacement Coverage (In insurance industry known as 43R). With in the first 30 months of your purchase of your new vehicle if the vehicle is written off then the insurance company will pay you the amount needed to buy a brand new vehicle (Of the same kind) or will pay you the Invoice price you paid for the vehicle.
I know this because my Impreza was written off after 3 monts and the insurance company cut a cheque for the Invioce amount I paid.

[musc]

Sounds like Canada has much better coverage for this sort of problem. Does it significantly increase your premium, or is this worked into a normal full coverage plan?

[G-Mach1]

It is worked in to your normal coverage. I think it works out be (For an Impreza) about CAD $12 or $ 15 per month. Not a bad deal. The funny thing is because of this coverage the Insurance companies will try to fix the Vehicle. In my Case the damages were estimated to be arounf 23K and still the insurance company wanted to fix the car. I had real tough time with them. Eventually they agreed to write it off.

[Bimmerista]

Originally Posted by canuck335i

euh, I wonder how come you know so much about this

[DowntownBMW]

Originally Posted by G-Mach1

It is worked in to your normal coverage. I think it works out be (For an Impreza) about CAD $12 or $ 15 per month. Not a bad deal. The funny thing is because of this coverage the Insurance companies will try to fix the Vehicle. In my Case the damages were estimated to be arounf 23K and still the insurance company wanted to fix the car. I had real tough time with them. Eventually they agreed to write it off.

but how much did your premiums go up the next year?
although, even if it goes up, i would expect you would still be ahead of the game

[G-Mach1]

Originally Posted by DowntownBMW

but how much did your premiums go up the next year?
although, even if it goes up, i would expect you would still be ahead of the game

Premium didn't go up at all. Since mine was a not at Fault accident. Right now All I have is a Winter vehicle with full coverage on it is less than half of what I used topay for the Impreza. For the 328 it is going to go up slightly (less then $20/Month) because of the value of the vehicle.