Comparing The Two Auto Insurance Companies As To Which One Will Pay You More For The Total Loss (Sale) Of Your Vehicle.
If you have collision insurance on your own auto insurance policy, and
if your vehicle is a "total loss", then your own auto insurance company
is only obligated under the terms of your insurance policy to pay you the "cash value"
for your vehicle, but no sales tax. If your vehicle is a "total loss",
the auto insurance company on the other side is obligated by law to pay you the "fair market value" of your vehicle, plus sales tax. Theoretically, "cash value" (the amount that your own collision coverage would pay for your vehicle) is slightly less than "fair market value" (the amount that the insurance company on the other side
would pay for your vehicle), because on average, people who buy
vehicles with cash pay slightly less for them than people who buy
vehicles by making payments over time. But, before you rush to call
the auto insurance company on the other side, remember that
unlike your own collision insurance company, the insurance company on
the other side, can arbitrarily reduce the amount they pay on your
vehicle claim by a percentage equal to the percentage that they blame
you (or your driver) for being at fault in causing the accident, such
as "50%-50%" (and then offer you only half of what is really owed on
your vehicle claim). What's worse, the other side can delay taking
action on your vehicle claim for weeks or months to "investigate" who
was at fault before it pays anything to anyone (causing storage costs
to pile up for which you could be held responsible even though
you did not cause the delay). On the other hand, if you have
"collision" insurance on your own auto insurance policy, your own auto
insurance must pay 100% of what it owes on your vehicle claim (minus
any applicable deductible), and it must pay immediately. No delays. No excuses.
For more information about Vehicles Involved In An Accident in Orlando contact Hanson &
Hanson, P.A. today at 1-800-426-7662 to schedule your free initial
consultation. More information about Orlando Auto Accidents can be
found in the practice areas section of our website.
