One of our clients was driving home from work when another driver hit her 2009 Acura TSX 4-door sedan. Our insured and her older daughter were injured. Her newborn baby daughter was unharmed (thank goodness for the child safety seat). After a visit to the hospital, I am happy to report that the family will be fine. I wish I could say more for her car - her 2009 Acura was totaled. You can see from the picture that the front end sustained enough damage that it could not be repaired. The accident was so severe that several of the airbags went off.
So, when does $60 = $13,000? Recently, some insurance companies started offering 'Car Damage Replacement Coverage' on new cars. The cost for the endorsement is around $20-$35 a year. Our insured owned this car for 3 years and her cost to have this on her policy would have been $60 over 3 years. Our insured declined this coverage when she bought the car. She probably thought, "I’m a good driver”. Problem is, we don’t know about the drivers around us.
When the dust settled, our client will receive what the value of her car was worth (fancy insurance term is 'Actual Cash Value') right before the accident. This is how typical claims are settled. Had she added the Car Damage Replacement Cost endorsement, she would be driving in a brand new Acura TSX. The difference between the value of her car and a new Acura is around $13,000. This is when $60 = $13,000! Not all insurance companies offer this endorsement so please check with us when you add a new car to your policy.
Wisconsin residents, now is a great time to contact us about any questions you might have on your auto, home, or life insurance!
