I know this is not the correct forum but figured would get more replys. I totalled my new truck about 1 month ago. Insurance is going to pay 23,500 which covers cost of vehicle. My question is do they give me a check to get another vehicle for the 23,500. How does it work because insurance said they will work with me on getting a new vehicle. Thanks for replys

 

DaveH,

It has been my experience that they will (must) give you the cash. This is no different than any type of other insurance (life, disability, AD&D, Homeowners', etc.) Insurance is a risk pooling arrangement whereby you and others agree to share a fixed and guaranteed loss (i.e. the premium) in return for protection from a possible and catastrophic loss. The risk can be transferred and shared among policy holders (i.e. a mutual insurance company), or it can be transferred to a state organization corporation (a stock insurance company). Nonetheless, an insurance policy is a contract between you and the insurance company (whether the company is mutual or stock). You promise to pay the premiums and they promise to pay you upon the occurance of a specified event (i.e. the accident).

What you may not realize is (depending on who is responsible for wrecking your car) that the insurance companies have a vested interest in making sure you are happy to a certain extent (re/ helping you get a new vehicle). If another party is responsible and their insurance is paying, the recovery agent assigned to your accident doesn't want to pay out more than they have to, but at the same time doesn't want you to contemplate costly litigation. I can guarantee you there is a direct correlation between people who get treated poorly by opposing-party insurance companies, and those that decide to get back through lawsuits. Just as the psychological factor is enormous in life insurance sales (i.e. unrealistic policy illustrations, playing off a parents' fear of leaving their child and spouse without adequate funds to live off of if they die early), it is a large factor in auto insurance.

If it is your insurance company that is paying out (you are at fault), they don't want to pay out more than they have to, but at the same time they don't want you to get angry at the amount they are giving you and subsequently leave for another insurance company. So maybe they know some people or can assist you in somehow locating or procuring a new rig.

Please note that this philosophy might not apply to discount insurance companies. Any discount service will usually carry poor customer service with it. My experience has been mostly with more expensive (and supposedly reputable) insurance companies like State Farm. State Farm charges a lot more than the discount insurance companies, and if I am not happy at the amount they give me for an accident, they can say goodbye to the cushy premiums I pay them every month, and they know that.

Another factor that also plays into the whole scenario is how much insurance you have with a certain company. For instance, my entire family is with State Farm. We have Homeowners, Auto, Renters, etc. etc. Even my extended family is with the same State Farm agent. If I get angry, a lot of policies go out the door. If you are an 18-year old with a policy with ACME Auto Insurance, you may not get as good a treatment, as you are not as important (to them).

 

Briefly, you get a check(to do with it whatever you want, after you pay off any loans on the vehicle). They get the title to your wrecked vehicle, which they can dispose of as they wish