What happens when my car is totaled?

In most cases your auto insurance provider will pay you for the actual cash value of your vehicle. Actual cash value equates to the replacement cost of your vehicle minus depreciation.

If you have comprehensive & collision coverage (comp and collision), your insurance company will write you a check for actual cash value, less your deductible.

If you owe more on your loan or lease than your vehicle is worth, then you should consider GAP insurance. Without GAP insurance, you will be responsible for any remaining balance on your loan.

The best way to save money on car insurance is to shop around for the cheapest rate.

What is GAP insurance?

GAP insurance protects the value of your newer vehicle when you have a loan or lease. If an accident happens, GAP insurance pays the difference between the value of your car and the remaining balance on your loan or lease. Often newer vehicles lose value quickly.  GAP insurance protects you from absorbing the difference if a loss should occur.

The amount between your insurance deductible and the loss from this financial shortfall is the “gap” you can be left owing. Typically a new car is worth approximately 30 percent less in 3 months than the day it was purchased.

In order to protect yourself from owing thousands you will want to purchase GAP insurance. Most of the carriers Ally Car Insurance lists offer GAP insurance.

If you think you may need GAP insurance, use our free quote form and enter your information to get a free quote that include GAP insurance. It will be listed as Loan/Lease Gap coverage as you fill out your quote.

What is an SR-22?

FAQ_buttonSR-22 is proof that you have certain types of insurance. Each state has their own SR-22 requirements. SR-22 is a form which must be filed by the insurance company to the state government stating that auto liability insurance is in effect for a particular individual.

Typically an SR-22 is required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense, such as a DUI, and was unable to show financial responsibility.  A judge may order an SR-22 for other reasons.

For a FREE car insurance quote enter your state here. On the second step, select Progressive and we will ask all the necessary questions to determine eligibility and get you a policy for individuals who are required to submit an SR-22.

What is a rebuilt car title?

FAQ_buttonThe definition of a rebuilt car title will differ depending upon the state you live in and laws specific to that state. A general definition (used by CarFax and others that report a vehicle's history) for a rebuilt title is a branded titled placed upon a rebuilt or reconstructed vehicle, which previously was a salvage vehicle but has now been repaired and restored to operation.

These vehicles are often severely damaged before they are rebuilt and refurbished parts are typically used during reconstruction. In most states, an inspection of the vehicle is required before the vehicle is allowed to return to the road.

So basically a rebuilt title means the car was in a serious accident or one in which the insurance company declared the car a total loss but then the vehicle was purchased and rebuilt or repaired and was once again found to be street worthy.

Before purchasing a rebuilt item, it is generally recommended to have it thoroughly checked out by your own mechanic. You also should check to see if the car can be insured since many insurance companies underwriting rules do not allow them to write policies for cars with salvage or rebuilt (branded) titles.

If you do get full coverage on a vehicle with a rebuilt title remember that since the car has been previously totaled out and has a branded title you should expect to get paid less if the car is in another total loss situation since the car is not worth as much as a vehicle with a clear title.

While it can be hard to get insurance for a car with a rebuilt title AllyCarInsurance.com can offer an insurance policy on salvage and rebuilt titles through our carrier, Progressive.

All you have to do is enter your state here and get a quote. On the second step, select Progressive and we will ask all the necessary questions to determine eligibility and get you a policy for your vehicle that has a rebuilt title.

Comparison of Loss By Vehicle Type and Size Weight 2005-2007 Models

The information in this post is based on collision coverage results for 2005-07 model passenger cars (including minivans), pickup trucks, and SUVs insured under private passenger automobile policies.

Two main factors determine collision losses. One is how often claims are filed (claim frequency). The other is how big the claim payments are, depending on the amount and severity of damage (average loss payment per claim). These two factors combine to indicate overall insurance losses, or average loss payments per insured vehicle year.


rel_claim_freq

As you can see in the chart above, very large SUVs had the lowest property claims (72), while small 2-door cars had the highest (130). For 4-door cars, we see that smaller cars had higher frequencies than larger ones. Pickups and luxury automobiles follow the same pattern. More...