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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Aug 10, 2015

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Insurance Question from Arlington, TX

Asked on 08/10/2015

Used car, need insurance, have questions Can I insure a car (not older than 10 years) for a value I say it is worth? If not is there an insurance that I can get in addition to the auto insurance that will fill the difference?Kinda like Gap insurance?Thanks

Answer given on August 24, 2015

Most auto insurance companies write coverage for comprehensive and collision using the “actual cash value” basis. This means the insurance company will pay you the actual cash value of the car at the time of the loss. The value is determined in many ways such as the Kelly Blue Book, local ads for similar cars and other resources. If, at the time of the settlement, you can prove your car is more valuable, then the insurance company will have to pay the adjusted value. Of course, all claims are subject to the deductible on the policy.There are a handful of insurance companies which will write an agreed value for the car. The value is determined at the outset of the policy and is listed on the policy. The value remains the same during the policy period, but may be adjusted downward at the renewal, if the car’s value has reduced. You may be able to have some input as to the value of the car when the policy is written, but it must be agreed to by the company.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and AS IS. It has not necessarily been reviewed by the management staff of nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on to represent you.

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