both are flawed.
29 October 2009
Is it common for car insurance company not to reimburse the down payment of a vehicle after an accident?
I was in an accident where I was not at fault. My car was totaled and the insurance company said that they would pay the bank loan balance for the car, but refuses to reimburse me the down payment which is $4000. Is that common?
Yes. You’re not going to get what you paid for the car, you’re going to get actual cash value minus depreciation for wear and tear, mileage, mechanical issues, etc. You should be lucky the insurance company is paying off the bank loan. The $4,000 down payment doesn’t even go towards the financing of the vehicle anyway. How do you think dealerships make their money?
does fully comprehensive car insurance cover mechanical repair?
I am considering buying a car but have heard some worrying stories about engines needing to re-built and other expensive parts, if my engine went would my insurance cover the cost or would I have to pay out of my own pocket?
Generally NO and a big fat no. It is not covered. However, I know of at least 1 company that will offer mechanical breakdown coverage. GEICO offers this exact coverage for new vehicle purchases and it covers mechanical issues. However that’s also what warranties are for.
Am I required to get rental car insurance if I don’t have my own auto insurance?
I am planning to sell my car and cancel my auto insurance. If I want to rent a car, am I required to buy their rental car insurance, since I wouldn’t have any other auto insurance otherwise?
If I use my Discover card to rent the car, Discover will provide me with a Collision Damage Waiver of up to $25,000. Would that count as insurance?
Yes Yes and Yes! It’s very important to have rental insurance. Let’s say you park the car on the street, and come back and its side swipped. They are going to come after you for it But if you have insurance, it should cover it.