What is actual cash value vs. replacement cost coverage?
” All auto policies are written for actual cash value. This is the amount it would cost your Tennessee auto insurance company to replace your vehicle, minus depreciation based on your car’s age. Replacement cost coverage, which you may purchase on your home, pays you for the total cost without a deduction for depreciation. “What is a deductible?” A deductible is the claim amount you must pay, according to your Tennessee auto insurance policy, before your insurer picks up the remainder of the bill. For instance, if your claim is $2,000 and your deductible is $500, you pay $500 and then your insurer pays the remaining $1,500. “Can my Tennessee auto insurance company refuse to renew my policy if I have too many claims?” Yes—even if you have just one claim. However, it must give you 30 days noticeand cite its reason for nonrenewal in writing. “Can my insurance company cancel my auto policy? Why?” Yes. If you don’t pay your premium or your license is suspended or revoked during the term of
