Arkansas Auto Insurance Question?

Question

I have a 1999 Mustang that I carry full coverage on and I live in Arkansas.  Someone recently cut two places in my convertible top, all the way through.  When I went to the claims office for their inspection, the claims specialist informed me that since this is a wear & tear part on the vehicle they will figure out the life expectancy of the particular part and they will depreciate it accordingly.  I don't pay a depreciated premium because my car is a 99 model...why do they get to depreciate things on it?  Does this sound like normal practice?

Mushu · Accepted Answer

Yes, it is standard practice. You are paying insurance rates for a 99 vehicle, the insurance company has every right to settle with you based on the age of that vehicle. You're not paying a premium for a newer model.

Wendy · Answer

1

PamelaS · Answer

Call your agent and get a quote on a new model, you'll find out how little you're paying. 
Mushu is correct.

Ben · Answer

They did that same crap to me...  I got robbed and they stole my son's dirtbike that was insured, I bought it for $1800 and only got $148 for it because of the "depreciated value".  I bought it brand new and it was only about 6 months old.  You can take them to court, but you will end up loosing.  Polaski county Arkansas is notorious for ripping people off that have their things stolen or vandalized.

Arkansas Auto Insurance Question?

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