When you first bought that car, you were probably mainly concerned about how it looked and how much you had to pay each month. However, if you want to keep driving your new ride, you need to understand the importance of car insurance. There are a lot of options out there, which is why I decided to make a website about auto insurance policies. As a car enthusiast, I currently own 21 cars, and I could tell you horror stories about people who decided not to worry about insurance. If you want to protect your investment and your personal wealth, auto insurance is something that you need to have. I made this website to teach others about auto insurance, so that you can make a great choice.
You've just received a phone call from your car insurance company following up on an accident you were in. They explain that the value of your car is less than the cost of the repairs, and, therefore, they plan on totaling it. "But...but…" you stammer, thinking about the aftermarket stereo you paid thousands of dollars for. Isn't there a way to salvage your stereo? If you talk with your insurance adjuster, there might be.
Your Insurance Adjuster
Your first reaction may be to call your car insurance agent, whom you already know. An agent will be able to explain the claim-filing process, but ultimately it will be your insurance adjuster who processes the claim. As the insurance company's representative in the claims process, they determine what the insurance company will agree to. Not only do they determine your insurer's assessment of your car's value, but they also can decide whether you can remove specific components, like an aftermarket car stereo.
Whether an insurance adjuster lets you remove your stereo will not be determined by how much they like you, however. Instead, their decision will be governed by the auto insurance coverages your policy included.
If you only have liability coverage, then your car stereo (and your car) are not protected by your insurance coverage. As The Law Dictionary explains, liability coverage covers harm caused to other people and damages cause to other property during an auto accident that you are responsible for. It does not provide coverage for your own car.
Therefore, if you only carry liability insurance, your insurance company will not reimburse you for the loss of your car or anything in it. While the financial loss may be devastating, the question of your stereo is easy to answer. Since your insurance company didn't insure your car, the stereo is yours to do with as you wish.
Comprehensive And Collision Coverage
Comprehensive and collision coverage are often grouped together, as both of them protect your car. Collision coverage reimburses you for damage done to your car if you hit something; comprehensive covers damage sustained when your car wasn't moving, such as vandalism. Some comprehensive and collision coverages include aftermarket parts, but others do not. You will need to read your policy's fine print to see if it includes coverage for your stereo.
If your policy includes coverage for aftermarket parts, then your insurer will reimburse you for the loss of your stereo. The amount you receive may be limited by the policy's terms or depreciation, but you will get something for your stereo system. Because the insurance company is reimbursing you for this loss, your adjuster probably won't let you keep the system.
If your policy does not cover your stereo, the adjuster might let you remove the stereo from your car. Because your car initially came with a factory-installed radio, though, you might have to reinstall the vehicle's original system. Even if it costs a few hundred dollars to have your stereo removed and install a factory radio, this may prove less expensive than buying an entire new system for your next vehicle.
If you've been in an accident and your insurance company wants to total the car, don't be afraid to ask a few questions -- especially if you have an expensive aftermarket stereo in your car. Unless the stereo is insured under your comprehensive or collision coverage, you might be able to remove it from the car and still collect from your insurance policy. Ask your claims adjuster whether this is alright to do. They will be able to explain why you can or cannot remove your stereo. For more information, contact a company like Preferred Insurance.Share