I am 70 years of age and a senior citizen; I suddenly lost my car in an accident. I just want to know if my car insurance covers replacing my lost vehicle.
First of all, car insurance does not replace vehicles. If you lost a Toyota Camry in an accident, do not expect your car insurance company to deliver another Camry the next day. The reason to this is that, when you purchase a vehicle, the very moment you drive it from the car company, its value is already depreciating. This is a fact about cars you should accept. So, having car insurance is, aside from abiding to the law, is for your protection and the other motorists around you and not something that will replace your lost car.
Depreciation of a car’s value is the main reason for car insurance companies to have what they call GAP insurance. This side of car insurance sees to it that during encounters such as the case presented in the question above, clients are still protected. This is because GAP insurance will see to it that during the time a client loses his and haven’t got one for some time, his remaining balance is still covered by his insurance.
Another thing that should be clear when it comes to car insurance is its coverage. Full coverage car insurance gives you added protection in situations wherein you may be caught in an accident injuring yourself or another motorist. This type of insurance will even include certain types of properties you might just damage along the way while driving. Liability coverage, on the other hand, is quite limited to few certain damages a car might incur during an accident. The damages it will cover will depend on your premium.
Usually, car insurance companies recommend full coverage car insurance coverage over liability car insurance coverage to senior citizens or to young drivers (below 20 years of age). This is for them to maximize the money they are paying the car insurance company. When seniors or young drivers’ avail of full coverage car insurance, they make sure that they have extra protection and that they are getting the benefit that they deserve.
Being a senior does not give you the excuse to say that you haven’t understood the policies on the car insurance contract before affixing your signature. Make it a habit to study car insurance policies first. Talk with an agent about the types of coverage that will best suit you. Always remember that the mere fact that you can still drive your own car is a sure sign that you are still on the right track.