My auto was declared a total loss following an accident. Is my Insurance Company required to reimburse me the replacement cost of my vehicle?

When your auto is declared a total loss, your insurance company will pay you only the actual cash value of the auto as of the date of the loss, not the cost to replace it. Your auto’s value is determined by the following factors: the retail value for an auto of like kind and quality prior to the accident; the price paid for the auto plus the value of prior improvements to the auto at the time of the accident; the decrease in value of the auto resulting from prior unrelated damage which is detected by the appraiser or for which a claim has been paid; and the actual purchase cost of an available auto of like kind and quality.
If your auto has substantial value because of its exceptional condition such as an antique, classic, or restored auto, you should have it appraised and then insure it for the appraised value.

Can my Insurance Company deny a claim for damages to my auto if the principle place of garaging listed on my application is false?

Yes. If you or someone on your behalf gives false, deceptive, misleading or incomplete information on any application and if such information increases the insurance company’s risk of loss, your company may then refuse to pay claims under any or all of the Optional Insurance coverages of the policy. Such information includes the description and place of garaging of the vehicles to be insured, the names of the operators required to be listed and the answers given for all listed operators. In the event that you have moved since you filled out your initial application, promptly notify your insurance company and the Registry of Motor Vehicles of your new address.

If I own an auto with collision and comprehensive coverage, will my insurance apply to a rental or borrowed private passenger auto?

Yes. Your collision and comprehensive insurance coverages are transferable to a substitute rented or borrowed private passenger auto while it is being operated by you or members of your household with the consent of the owner. There is no coverage under your policy for family friends or significant others. You should be aware that your coverage is available only if you rent or borrow a private passenger auto in the United States or Canada. You should also be aware that your policy does not provide coverage for a borrowed or rented truck. If you are renting a truck, you should check with the rental company regarding the purchase of collision and comprehensive insurance. If you are borrowing a truck, make sure you determine whether or not the owner has purchased collision or comprehensive coverage. If the owner does not have insurance, you may be personally liable for any damage to that truck which is the result of your negligent operation. If the use is for business rather than pleasure, call your agent first. Business use is usually not covered under your personal auto insurance policy.

Have a question?

No problem. If you can’t find a Frequently Asked Question above send us an email, or give us a call, and we would be happy to answer anything we missed here.

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