Comprehensive Insurance Questions...

[denot]

Hi all...

I just have this discussion with my mates last weekend regarding claiming Comprehensive insurance...

Ok here goes...

The situation is if sum1 have an accident that totally write off his/her car and this accident is at his/her fault (e.g. sleeping while driving, looking to the side coz a hot chick just passed, etc), can he/she claim the comprehensive insurance and pay only the basic access fee (e.g. $500 for over 25, etc)? If the answer is yes, that means if you buy a new car, sum1 scratch it, then before your comp insurance finish (after almost a year), you can just "bravely" smash it into a wall and then get a new car in return?

another question is if you have the car loan to bought the car, will the insurance pay you money to repay your loan or just cash to buy a new car and then do we need to payout the car loan or can we still continue paying the same ammount?

Well... any insurance ppl out there that can clarify this to us?

Thanks :D

[m0nty ITR]

You need to cover the difference between what you owe and what the car was insured for. Remember that all insurance companies reserve the right to offer you a value on the car that at times does not match your insured value. To avoid the scenario of being shortchanged you need to get GAP cover on your finance policy. There are two kinds of finance, personal unsecured loans and car loans. Car loans require the car be recorded against the finance for repossession if it arises. Personal unsecured loans are not asset backed. They'll repossess anything they can to get the money back to cover the loan. Your finance policy must be paid out if your car under the current policy is written off.

In terms of crashing deliberately, be very careful. Just typing this on a public forum can be misconstrued as consiprising to commit insurance fraud.

Now, off the cuff... you'd be a complete idiot to run your own car into a wall to get insurance payouts. It's idiotic claims and scams like this that make insurance high for the rest of us. I hope to God you're not the one thinking about doing this.

[denot]

Heaven Forbid M0nty!!!! It just something that me and my mate cant figure out the answer after spending 3-4 hrs talking about this stuff... and no... I really love my current car and no way near on doing that rubish... (thisreminds me I that have to wash her tonite :p)