Will Full Coverage Insurance Cover Totaled Car in Maryland?
Reader’s Question:
My husband backed into pole while at the grocery store, our car is totaled. I just want to know if the insurance going to cover this, we do have full coverage on the car? Will our auto insurance payments go up in Gaithersburg, MD?
Paul
Gaithersburg, MD
Yes, if you have collision coverage on your car then your car insurance should cover damages caused by your husband backing into a pole at the grocery store. You will have to pay the deductible associated with your collision coverage and make a car insurance claim under this portion of your physical damage coverages.
If your car is totaled out by your insurance carrier then you should be paid actual cash value (ACV) for it. Actual cash value is the fair market amount that your car would have been worth in the condition it was in before the accident.
The way in which the actual cash value (ACV) is calculated varies by insurance carrier to insurance carrier but usually uses the Blue Book value, cost of buying a vehicle in similar condition from a local auto dealer or private party. The condition of your car, options, mileage, and equipment are all taken into account when determining the ACV.
Whether this at-fault accident will cause your car insurance premiums to go up in Gaithersburg, MD will depend upon your insurance carrier’s guidelines and rating system. You should speak with them if this accident claim will affect your car insurance rates with your insurance agent who knows your insurance company’s specific rating system.
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