My Car Caught On Fire and My Auto Insurance is Claim Was Denied?

Reader’s Question:

I have full coverage on my car in Kentucky and a few weeks ago my car was caught on fire however when the claims adjuster checked my vehicle in a few days he said that all of my aftermarket parts such as amplifier, CD, etc. made hot leads to the battery and that is where the fire originated which was according to the fire department so the claim will be denied?

James

Louisville, KY

Insurance carriers in Louisville, Kentucky vary on their guidelines with regards to aftermarket parts or the customizing of automobiles. Usually your auto insurance carrier would need to be informed about the performance parts beforehand for these to be covered under your car insurance policy. Most insurance providers want to do an endorsement for these non-factory parts to be covered under your car insurance policy.

You will have to speak to your car claims adjuster regarding the custom parts to check if those will be covered.If you have the receipts, it will be useful if your car insurance carrier will permit your car insurance claim. Keep in mind to always let your insurance carrier be informed about any addition to your car so you will be sure your car insurance policy will cover these parts.

You can always shop around for auto insurance company in  Kentucky that will permit customized parts and get auto insurance quote for your vehicle.

Can My Car Be Registered To My Parents and I Pay For Auto Insurance Policy?

Reader’s Question:

Can I have the title of the vehicle under my name and have the car insurance under my mother’s insurance policy in Covington, KY?

Thomas

Covington, KY

Insurance carriers in Covington, KY have different guidelines so you will have to know for sure if your father’s insurance would permit this type of set up for car insurance. One must have insurable interest in order to insure a car. If you want your mother to insure your vehicle, instead of yourself, then many insurance providers would not permit this since she does not have insurable interest in the car.

If you live in the same household as your mother and want to add the vehicle to her current insurance policy this may be permitted, again it will depend upon what her insurance carrier’s underwriting guidelines are. If instead you live outside of her household and thus the vehicle is garaged at a different address then it is unlikely that an insurance carrier would allow her to insure the vehicle under her insurance policy.

Car Insurance Claim and Diminished Value Question

Reader’s Question:

I was found to be at-fault in an accident and the other driver filed a claim against my car insurance company for property damage. He quoted about $5,000 that he said he lost in diminished value. Is there such a thing as “diminished value” claim that is payable under my auto insurance policy?

Chelsea

Fayette, KY

If you just heard about a “diminished value” claim, it does exist. This claim is based on the idea that any car that has been in an accident, regardless of how well the repairs are done, is worth less than the exact same car that hasn’t been in an accident.

The physical damage section of an auto insurance policy does not usually cover claims for a car’s “diminished value” after an accident. It applies to direct and accidental damage only. By definition, direct damage is the actual physical damage done to the car, not a loss in value.

This is the reason why some courts began to question this approach and ruled that since diminution in value was not specifically excluded by the terms of the policy, it was covered.

However, a diminished value claim is a liability claim for property damage and cannot be judged in the same light as a physical damage claim. Under a liability claim, the insurer agrees to pay damages for property damage for which the insured is legally responsible because of an auto accident. If you’re legally liable for the damages of the claimant, then whatever the amount for which you’re liable for is the amount the policy will pay. Be aware that it still is subject to the limit of liability amounts.

It’s always advisable to contact your insurance agent in Fayette, KY or your insurance company directly to have a further discussion regarding the terms of your policy.

Should I Accept My Auto Insurance Company Settlement Offer?

Reader’s Question:

I’m Gayle from Fayette, KY and had a recent car accident. I want to know what actions must I take after a car accident? Do I need to accept a settlement offer from the insurance company?

Gayle

Fayette, KY

Hi Gayle. Under the Kentucky law (KRS 189.635) you are required to call the police to report the accident if someone is harmed or injured; or one of the cars is rendered inoperable. If no police investigation is made and either the car suffers $500 or more in damage expense you must report the incident to the State Police within 10 days. Next, your car insurance company requires you to report the accident to your insurance company and fill out the appropriate forms.

As for your second question, the answer can be a Yes or a No. Car insurance companies in Fayette, KY are notorious for offering settlements that are far less than the injured party deserves. However, if the car insurance company is offering what you feel the car is worth, then you can accept it. It will also be advantageous if you consult an experienced lawyer that is knowledgeable on car accident laws. By contacting an auto accident injury lawyer you may be able to receive a much larger settlement than the car insurance company has offered.

Can I Use My Parents Out of State Auto Insurance in Kentucky?

Reader’s Question:

I currently live with my father in Ohio and have my vehicle insured under his insurance. In a few months I am moving to Kentucky where I will be going to college. Can I stay on my fathers insurance, as that is where my permanent residency is or do I have to obtain my own insurance?

Kathy

Lexington-Fayette, KY

This differ from insurance provider to insurance provider. Most insurance carrier will continue to insure you on your father’s policy if you will be attending school in the same state. Other companies will continue to insure you if you attend school in another state. Some insurance companies will not insure you if you will be attending school in another state. Your father should contact his insurance agent or insurance carrier to determine what their guidelines are.