Question about car sale tax and insurance?

Question

Hey I got a question, someone please help.

Let say if I buy a used car from a private seller for $7,000 and he gave me a receipt for $5,000 so I can get tax less in DMV.

What happen if my car get stolen a month later. Will the insurance company pay me based on market value of the car or the receipt for $5,000 which I register the title with?

Thank you.

Answer 1

You will get fair market value for the car.  What you pay for something has nothing at all to do with its worth.

Answer 2

You'll get what the insurance company figures it will cost to replace the car.  Their number is lower than it would cost you to replace it.  Fight for more money, make them pay for the gas in the car.  Make them pay for any additional upgrades you made.

Answer 3

Ignore the guy above, You had it right. The insurance company will give you whatever the market value is. Even if you bout it for 7000 and its worth 15000. The insurance company will give you 15000 for the vehicle to replace it because thats what its worth.

Good luck, and that guy was pretty nice to do that for you.

Answer 4

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