What Kind Of Auto Insurance Will Pay For Vehicle Fire?

Reader’s Question:

What kind or auto insurance will kick in if I lost my vehicle in a fire? Will the auto insurance company pay me what my vehicle’s worth?

Rashid

Danbury, CT

Good question. Your policy’s comprehensive insurance clause will be the one to cover you in this case. Comprehensive coverage is a portion of your auto insurance plan that protects you against losses resulting from incidents not relating to a collision. These incidents would include automobile theft, vandalism, hail storms, tornados, loss due to other natural disasters, and fire.

Assuming that you have a good auto insurer there in Connecticut – and you purchased the best auto insurance policy they have to offer – then there should be no reason for you not t get compensated for the loss of your vehicle. However, do take in mind a few things: first, you will have to pay a deductible once you file a claim. This deductible may or may not become a big deal depending on the actual value of your vehicle. If you’re vehicle is only worth $1000 then it may not be worth it to put up a $500 deductible for a claim.

Second, you’re auto insurer may pay you for the actual cash value (ACV) of your lost vehicle. This may be different than the actual worth of your vehicle when during the time you insured it. This difference arises from the fact that your vehicle’s value depreciates over time.

It’s highly recommended that you read your policy’s terms and conditions carefully. Also, don’t hesitate to file that claim if you’re vehicle is fairly expensive. That is the whole reason you got auto insurance coverage in the first place.