Insuring a Damaged Vehicle
My daughter recently had a car accident just a few days after we were informed that our insurance company wouldn’t be renewing our policies, as they are no longer operating in our state. We’re currently facing delays in getting an estimate for the damage, but we have a feeling the car might be deemed a total loss. I’m in the process of shopping for a new policy, and I’m uncertain whether I should include the damaged vehicle in that coverage. If it’s repairable, I might need to insure it, but if not, a replacement will be necessary. Any advice would be greatly appreciated. Thank you!
I’m sorry to hear about your daughter’s accident and the complications with your insurance. Here are a few points to consider:
Timing of the New Policy: Since your current insurance has been canceled, it’s essential to have a new policy in place as soon as possible. You want to ensure you’re covered for any liability arising from the accident, even if the vehicle is considered “totaled.”
Including the Damaged Vehicle: Generally, insurance companies will cover vehicles that are actively under a policy. If you add the damaged vehicle to your new policy, it could provide some liability coverage. However, if the vehicle is declared a total loss, you’ll need to discuss this with your insurance provider about how they handle such cases.
Repair vs. Replacement: If there’s a chance the vehicle can be repaired and you plan on keeping it, you may want to add it to your new policy temporarily. However, if the estimates confirm a total loss, it may be more prudent to exclude it, especially since you would eventually want to replace it with a new vehicle.
Communicate with Your New Insurer: Be transparent about the situation with your prospective insurance companies. They can give you the best guidance on how to handle the damaged vehicle and what coverage is necessary until the situation is resolved.
Get a Settlement: If the vehicle is totaled, make sure to follow the claims process thoroughly to understand what settlement you might receive from the prior insurer.
Ultimately, consult with your new insurance agent to ensure you’re making the best decisions based on your specific circumstances. Good luck, and I hope things get resolved quickly!