Ask an Attorney a Question for FREE!
Insurance Claim on Loss of Vehicle
by Eric Wong
If an individual is entitled to import a car with exemption to pay import duty and taxes and he covers the car insurance on market. The car without import duty and taxes can be say $50,000 and the when with import duty and taxes at $75,000 which is the market value of the vehicle.
Consequently, he insured for the market value of $75,000
In the event of loss, will the insurance company pay him the insured value of $75,000
No. Insurance companies the fair market value of the vehicle where the vehicle was insured at, thus, the import duty may very well not be included. The fact that there is a stated value, it does not mean that the insurance company will pay that amount. The stated value acts as a “limit” and therefore, the MOST the insurance company would pay is $75,000.
Now, this answer is related to "normal" insurance policies. However, you can purchase insurance that will pay for the vehicle at the destination value. Contact the underwriter of your insurance company and see if they can give you the exactly what you need.
Click here to post comments
Join in and write your own page! It's easy to do. How? Simply click here to return to Got Questions?.
Please see more answers to recent personal injury and auto accident questions below:
For a Free Review of Your Case