Auto Insurance for Totaled Car Texas TX
Reader’s Question:
My name is Angela and I live in Texas. What would happen if my car gets totaled because of a road accident?
Angela
Houston, TX
When your car gets totaled, and I hope nobody gets hurt, it means that the auto insurance company has decided or has found out that repairing your car will be costlier than buying the same car with the same condition as before the accident. Meaning, it would be cheaper to replace it with a second-hand car of the same make and model in Texas. The original value of your car minus depreciation is called actual cash value, and that’s what the auto insurance company will consider.
Now, how do auto insurance companies reach an actual value of your wrecked car? Your car will be compared by the auto insurance company to the value of existing cars with similar condition. Your auto insurance company will be getting input from local auto dealers, parts dealer and other private parties not connected to the auto insurance company. The company will also look at the value of your car in the second-hand car market. Furthermore, the actual price of your car will be adjusted according to the condition and the mileage of the car. The trade-in value of your car would be the value that could best approximate the amount that you will get when your car gets totaled in an accident, that and a few adjustments depending on the actual condition of the car.
Tags: auto insurance, used car
Teen Driver Insurance Arlington Texas TX
Reader’s Question:
My mom just bought me a car for my graduation and I am already planning to get an auto insurance here at Arlington, Texas. However, my driver’s license got suspended just recently. I wonder if I can still get car insurance even with a suspended license.
Sean
Arlington, TX
Hi Sean, was your license suspended because you did not have vehicle insurance when an accident happened? In any case, every state, including Texas, has a different set of rules when it comes to requiring drivers to get insurance, and each insurance company has a different set of guidelines, too. If you’ve done some shopping already, you will notice that some car insurance companies would allow you to have your policy processed as long as your license is also in the process of getting reinstated. Some insurance companies provide 45 days until you obtain a valid license, while some companies provide a shorter period. Whichever automotive insurance company you plan to get, just remember that there will always be specific laws, directed to those who are driving on a suspended license and to drivers with no insurance at all. And typically, if you get into trouble, you will have to pay the fine for not only driving without a valid license, but also for not having insurance, too. So to save up for all the possible losses or spending, I suggest you get your license reinstated and also get your auto insurance simultaneously.
Better safe than sorry!
Tags: auto insurance, car insurance, teen insurance, Young driver car insurance