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The Injury Lawyer in Hamilton understands that the owner of a financed car must pay off that loan, even if the same car has suffered irreparable damage.
An automobile with irreparable damage would be viewed as a total loss.
The phrase “total loss” indicates that the cost for repairs would exceed the auto’s actual cash value. An insurance company pays the owner of a totaled automobile an amount of money that equals the same auto’s actual cash value (ACV).
Receipt of a car’s ACV does not cover the amount of money remaining on any loan.
Purchase of gap insurance should provide the car owner with the ability to cover the outstanding balance on any car loan.
Certain expenses are not covered by gap insurance.
—The cost of repairs
—Medical expenses
—Price of rental car
—Any carry-over balance from a previous loan
Certain car owners should consider an alternative to gap insurance.
That alternative is new car replacement insurance. It pays the policyholder enough money to cover purchase another automobile, one that is the same make and model as damaged car.
New car insurance could be worth its high price, if the policyholder wanted to cover a luxury or electric vehicle. Those sorts of vehicles tend to depreciate at a fast rate.
New car insurance cannot be combined with gap insurance.
Insurance companies view new car insurance as add-on coverage, if a policyholder has already purchased the collision and comprehensive options.
The insurance company removes a value that is worth the deductible, before providing the policyholder with the promised payment. So, the policyholder does not receive an amount of money that equals the dollar value of the automobile at the time of its purchase.
Would it make sense for someone that did not have a luxury or electric vehicle to buy new car insurance?
In one of the company’s TV ads, a man buys a car and drives it out of the dealership. Yet he must drive past the lot in which a large balloon has been on display. That balloon falls on the new car, just as it passes under that parking lot display.
That represents an excellent attempt to portray the worst possible situation. Few drivers would ever face such a situation. Still, a negligent act by an employee at a dealership might be something that the marketers should consider.
For instance, suppose that someone with a new automobile had arranged for it to receive an accessory, such as air conditioning. Then suppose that an employee pulled the seat back, when driving the accessorized auto out from the shop. If the seat could not be returned to its correct position, how would that failure be handled?
These type of accidents happen and that is when you need a personal injury lawyer to help you out in such situations.