If your ca r is stolen does insurance pay what you owe or what the car is worth?

Question

If your ca r is stolen does insurance pay what you owe or what the car is worth?

Answer 1

It pays the actual cash value of the vehicle in the local market area less your policy deductible.

Answer 2

Hi,

Car Insurance is insurance for the declared depreciated value of your car. If the Car is stolen, the Insurance Company will pay the Insured Declared Value in your policy.

The loan amount payable would be paid to the Financier and remaining (if any) would be paid to the owner.

Note: That when a Car is stolen, the Insurance Company will require an FIR copy from the police. The Insurance Company also normally waits for a month, to check if the police is able to recover the stolen car through its investigation.

Answer 3

What the car is worth.

Answer 4

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Answer 5

They pay what they say it's worth, which may or may not be what you think it's worth and may or may not be blue book value.

Another answer spoke of GAP insurance. This can be great but don't buy from the dealer, buy from your auto insurance company. You'll be paying twice as much for it through the dealer.

Answer 6

I think it pays what the value of the car not what is owed.  This is why it is always a good idea to purchase GAP insurance from the dealer.  This is not very costly and pays the difference.  Say the car is valued at $20,000 but you owe $25,000, the Gap insurance pays the $5,000 the insurance won't.