How Are Auto Insurance Claims & Losses Settled?



The insurance company’s limit of auto liability is typically the least amount of (a) the ACV (actual cash value) of stolen or damaged auto or (b) the dollar amount needed to fix or replace the auto/ auto parts with another auto/ auto parts of like kind and quality. Furthermore, there is a $500 set as the maximum payment for loss/ damage to a nonowned trailer, and $1,000 is the maximum amount for equipment designed solely for the reproduction of sound that was an addition (was not made by the vehicle manufacture.)

Auto insurance companies have the legal rights to compensate for losses in money or to repair or replace damaged or stolen property. The companies also have the choice of turning back stolen autos/ parts to the insured person and paying any damages that results from the theft, or of maintaining all or part of the autos/ parts and compensating the insured person an agreed upon value or  or appraised amount. Claims payments in the form of money shall include all related sales tax.Auto Insurance Quotes

All auto insurance policies do include appraisal terms and provisions that apply to scenarios when the insurance companies and insured person do not or can not agree on the total amounts of claim or loss.

Anytime  there is other auto insurance policy on the same auto, losses are settled on a pro rata basis. There is an exception to that whic is related to coverage on a non owned aut. Coverage on non owned auto  is excess over other collectible insurance.
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