Car only insured for what you payed for it?

Question 1
Car only insured for what you payed for it?...  I bought a used car for $100 from a family friend and I was informed at the DMV that the lady thinks the insurance will only cover what I payed for the car... this being $100, is this true, or will the insurance cover what the car is worth in the retail world and not what we payed for a private sale?

Answers
1)   Uh, it doesn't work like that. The insurance company will pay (if you have that coverage) the value of the car, not what you paid for it. - Bungholio

2)   if you have full coverage the insurance usually pays book value, depends on your company and policy - ladystang

3)   In most states, you will be paid the actual cash value (acv) of the car. Some companies utilize the NADA guides and some use other sources. They would subtract for any previous damage ad deductible amounts. - Greg P

4)   Insurance will only pay Blue Book minus your deductible. - BigD

5)   If the car is damaged and considered a total loss, the insurance pays replacement value at the time of loss. If you paid $10,000 and comparable cars are selling for $2500, you would get $2500 (less any deductible)



If you paid $100, and comparable cars are selling for $2500, you would again get $2500 (less any deductible)



The woman at DMV was trying to get you to say you paid more, so that more tax would be due. - fire4511


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Question 2
How much does insurance cost for a first time car buyer? and when are you suppose to get it?...  i have to wait 6 months till i am able to drive alone but, i want to know all those details before those 6 months are up for me to drive. so if you could please answer these little questions.



How much does insurance cost for a first time buyer?



When are you suppose to get insurance?
what if the car is used?



and the state is Delaware?

Answers
1)   The owner of the car is responsible for getting it insured, so it better have it *before* you get behind the wheel. Cost depends on you, where you live, where the car will be parked, what kind of car, if it's alarmed, and other factors. - Bungholio

2)   When I go looking for replacement car insurance is a quite simple way to save a lot of money. You can get a quick quote at websites they often give you multiple quotes.

I tell my friends about http://www.InsureAutoNow.info - Cecile M

3)   If you are buying from a car lot and going to make payments they generally require full coverage , and that requires photos taken buy insurance company to finalize sell. Price is all depending on the company and your driving record - Andrea

4)   get more details ;open the first & fourth link in: www.autosinsurancequote.co.cc - Lolitta gomez


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Question 3
If someone without a license totals your car, does insurance still cover the loss?...  This is assuming you gave that person permission to drive your car.
this didn't happen to me. it happened to someone i know and she says her insurance won't cover it. I was under the impression that they would

Answers
1)   Maybe but they will likely immediately cancel your policy. I'd start looking for a new insurer if I were you. - wyllow

2)   Check into your "uninsured motorist" protection. It is part of the policy. Why would you permit this? The first answer is correct, they will automatically terminate you, and that looks BAD!!! - The REAL Steel Deal!!!

3)   If someone stupidly gives a person with no license access to their car, they violated the terms of the insurance policy. Lending a car to anyone is not a good idea, you are responsible for what that car does, so if some nitwit dumb ass is riding around in your car because you gave them the keys, you are screwed. And the insurance company is not going to pay a invalid claim. Part of being responsible, is making sure no nitwit has the keys to your car. There was a reason the persons license was suspended, and they proved it. Never take some nitwits word , always check and make sure if you are stupid enough to loan your car that you can live without it, in case dorkwad runs into a pole and totals it. - dick car guy

4)   Yes, assuming you have collision insurance on the car.



Giving the keys to someone who doesn't have a license is a dumb idea but there's no exclusion for it in your policy. As long as the damages were the "result of an accident" and were not intentional then it's covered.



There are some exceptions to this. If the car was made available for the regular use of the unlicensed driver and they were not on the policy it might not be covered. If the car was totaled and the person you know claimed it was "stolen" and had actually given the unlicensed driver the keys it might not be covered. (At least not as a theft).



But just doing something dumb doesn't usually void coverage. There is a saying in insurance called "Stupidity is Covered". If you're not intentionally damaging the car it's pretty hard to void the coverage. - Rogue Claims Adjuster


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Question 4
Can I report fraud to an auto insurance company?...  So this person I work with keeps on bragging on how she told her auto insurance company she drives her car for 7500 miles per year, but she usually goes 8000! She also says she told them it's all for personal use, but I don't buy it.



It's not fair. Us honest drivers have to pay more because scum like her lie to the insurance companies.



Is there a way to report this? Or should I wait for karma to bite her? Insurance companies can find out if she is lying...right?

Answers
1)   how old are you??? like 12 or what?? are you so chronically messed up in your own head, you spin uselessly on your thumb worrying about dumb crap that makes not one lick of sense, WHO CARES, no one put the tattle tale of the neighborhood award on your t shirt, my advice, stop worrying about non sense, I have found people who spend a lot of time being paranoid about some percieved wrong, often times have issues in their life where they are responsible for the exact same behavior as the person they accuse.

You are best off minding your own business, life is too short to spend so much wasted time worrying about other peoples problems, so stop watching those stupid soap operas on tv, mind your own business and worry about you, you have some mental issues already. - dick car guy

2)   Feel free to contact her insurance agent! You can do it anonymously if you like. They will certainly check it out, and look at actual odometer readings. (And it is very easy to see whether an odometer has been altered in any way. Trust me, they know what to look for, and it is very clear even to an idiot.) If she drives the car only to and from work and around town, it probably IS just personal use. However, if she uses it to deliver pizza or newspapers, etc., that is business use and that is a very big deal. Insurers WILL investigate allegations of fraud. - Mary

3)   It's not fraud. It's just a small misrepresentation on the application for insurance.



The difference in premium between driving 7500 miles a year and 8000 miles a year is so small (if there is any at all) it's immaterial.



Even if the person had a claim and the insurance company discovered the misrepresentation it's not large enough to void coverage.



The only misrepresentations on an insurance application that will affect insurance coverage are ones that are so big that if the truth had been known the insurer wouldn't have insured the person at all, even at a much higher price. - Rogue Claims Adjuster


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Question 5
if a car got into an accident which is in full coverage insurance do you need to provide a police report?...  what is the requirements for a full coverage car insurance to get paid for the damaged acquired during a car accident?

Answers
1)   yeah you need to ame a police report for any type off accident you get in even if its hitting an animal - thegreatone1

2)   Well you should have called them from the accident scene. A police report will be needed, yes and they will initiate the claim for your accident, this is of course assuming you are the at fault driver. If you aren't, then the party that hit you is responsible for contacting their insurance company. Requirements vary by claim. Just contact your insurance company or agent and they will gladly walk you through it. - Adrianna Denise

3)   a car does not get in an accident by itself, so depending on the situation, for example if there were any injuries it is best to call 911 and report the accident, If it was a single vehicle accident, with no injuries, you may not necessarily have to call the police, but if the vehicle was totaled, and above the state limit, you would at the very least be required to notify the dmv withing a certian period of time. Now adays, police are reluctant to even write reports for non injury accidents, and this is more and more common everyday, as police agencies are stretched thinner by budget cuts, less services will be available. - dick car guy


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