On Mon, 29 Feb 2016 15:24:07 -0500, Ed Pawlowski wrote:

On 2/29/2016 3:13 PM, Muggles wrote:

The difference is in this situation, it was only a few months old, and
it's a requirement here to have full coverage insurance on cars that age
if you are making payments on it.

The insurance company is required to restore the vehicle to top
condition with that sort of car insurance. It wouldn't matter if the
car was 4 years old. If it's still financed and payments are being made
on it, and it's insured for full coverage, the insurance company will
fix it.



Unless the cost to fix it is more than book value. Then they give you
the value no matter how much you owe. Some people carry gap insurance
to cover the difference.

One insurance company is advertising they will pay for a one year newer
car if you total yours.
Some insurers will provide "full value" insurance for the first year,
two years, or more.
Some lenders will require this coverage - others will highly recommend
it - and some who are also in the insurance business will provide it.

Don't knaw about in the USA, but up here several large financial
institutions are also insurance companies. (not that I'd recommend
doing insurance - or any other - business with them, but that's
another story completely)