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Pre-accident condition or diminished value?One of the many purposes of free auto insurance quotes is to explain the obligation of the insurance company to indemnify the vehicle owner for any losses. To indemnify means to make whole or to “restore” the auto back in exactly the same condition it was in just prior to the loss or pre-accident condition. The insurance company is required to restore your vehicle to its pre-accident condition with regard to appearance and value. The difference in an auto's value before an accident and the same vehicle’s value once repairs are completed can be very different. This difference in value is called “diminished value.” Free auto insurance quotes will include any costs for this requirement/responsibility of the insurance company to its policyholders if any additional premium costs apply.
The pre-accident condition obligation can depend on the state as well as the terms of the auto insurance policy. Requests for an auto free insurance NJ quote for pre-accident value requirement and an auto free insurance PA quote may be similar, however some auto insurance companies use original equipment manufacturer (OEM) parts while others use non-OEM parts to meet the pre-accident condition standards. If repairs to the damaged auto directly affect the operational safety of the car, the insurance company may be required by state law to replace it with an original equipment manufacturer part. State regulations of pre-accident values should be disclosed in a free instant auto insurance quote. For non-safety-related parts, there may be more restrictions on the use of OEM both under state law as well as the auto policy. A policyholder may be able to insist on OEM parts, but where they aren’t required the insured will generally have to pay the difference in cost. These costs can be disclosed in a discount free auto insurance quote. Prior to being repaired, a vehicle that has been wrecked is worth less than before the accident due to the damage sustained during the accident; but is it possible to repair the auto back to its pre-accident market value. The condition of an insured’s car can be a sticking point. Insurance companies may sometimes insist a car was a more damaged pre-accident than it actually was, to avoid paying out necessary claims. Sometimes this information will not be disclosed in a cheap free auto insurance quote. In this case, it is up to the potential policy buyer to require the insurance company to inform the consumer of the procedures it follows in obtaining the vehicle’s pre-accident value prior to the purchase of the policy. Industry experts suggest that you obtain at least three free auto insurance quotes.
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