Auto Insurance Coverage for Repaired and Totaled Vehicle Arkansas AK
Reader’s Question:
I got into a wreck here in Arkansas, and I’m still waiting for a call from the claims adjuster. I don’t know if my car will be repaired or if it will just be totaled. Can you tell me what will happen if it turns out either way?
Rick
Pine Bluff, AK
Auto insurance policies are not replacement policies, so don’t expect that your vehicle will be replaced whenever you get into a wreck. Your auto insurance policy only covers the actual cash value (ACV) of your vehicle at the time of the accident. The auto insurance company can either repair your vehicle or pay for the vehicle’s ACV if it gets totaled.
If the auto insurance company there in Arkansas decides to repair your vehicle, it may opt to use aftermarket parts to meet your vehicle’s ACV. Aftermarket parts are used parts that are produced by companies other than those that make the original parts. The use of aftermarket parts is not really indicated in your insurance contract, so you may request from your auto insurance company not to use them. However, since original parts are more expensive, if the cost of repair of your vehicle goes beyond what is covered by your policy, then you are expected to pay for that extra cost.
If the auto insurance company totals your car, it means that the cost of repairing your damaged vehicle is more than the vehicle’s actual worth. The auto insurance company will more likely offer you a price that is equal to your car’s worth in the market. You may want to get several quotes for a similar vehicle from used car dealers, so you could get an idea on how much your vehicle costs. Remember that the auto insurance company could always raise its offer to you as long as you give them proof of your vehicle’s worth.
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