Does car insurance pay sales taxes and destination charge if your brand new car gets damaged?

Question

Does car insurance pay sales taxes and destination charge if your brand new car gets damaged?

If your brand new car gets damage totally. what does the insurance company pay for?

How long after buying brand new car does the insurance consider it not new any more?

Answer 1

For auto insurance the quick way to get a good quote is do a rate comparison on car policies. Make certain that you compare similar policies with the same limits, auto model, zip code, etc so that all options are a good comparison.



What I usually recommend is an online comparison quote at http://www.InsureAutoNow.info since they have discount insurers and will give multiple prices on auto insurance polices.

Answer 2

They pay tax on the value of the vehicle at the time of the loss.  No on the destination charges but...everything is negotiable

Answer 3

As soon as you drove that car off the lot -- it became a used vehicle and the value of the vehicle dropped.



If you drove it off the lot - across the street - turned around in a parking lot and drove back across the street to the dealership and said "I changed my mind...I want to return this car". Even though you put less than 1 mile on the car -- it is still considered a used car. The dealer would have to sell the car as a used car.

If you bought the car - drove it 2.5 miles to your house and sold it....you have to sell it as a used car. The title will show "used".

Once ownership of the vehicle transferred from the dealer to you--- the car became "used".

If the car is a total loss - the insurance company will price out used cars of the same year/make/model and similar mileage. They will make adjustments to the value as needed. They can give you something for sales tax but not the destination charge. They don't give you what you paid for the car. They have to price it as a used car....because that's what it is.

However, if you were a smart cookie....you purchased GAP Insurance when you bought the car. The gap insurance will pick up and pay the difference between the loan amount and the value of the car.

Answer 4

No...does not pay you for your down payment either.  Insurance policies are obligated to pay the actual cash value of the vehicle only plus tax on that value and pro-rated license fees.

Your new car is used as soon as you drive it off the dealership lot.

Answer 5

I wish my experience is helpful for you.Here is the good resource.http://car-insurance.online-tips.info/ca...