The insurance company's liability under comprehensive coverage is limited to the ________ of the vehicle at the time of the loss.

Question

Quizplus · Accepted Answer

Comprehensive coverage typically pays out the actual cash value of the vehicle at the time of the loss, which takes into account factors such as the vehicle's age, condition, and market value. The outstanding loan value or replacement value may be higher than the actual cash value, but the insurance company is only liable for the actual cash value. Stated value is a different type of coverage that involves agreeing on a specific value for the vehicle in advance, but it is not commonly used for comprehensive coverage.

The Insurance Company's Liability Under Comprehensive Coverage Is Limited to the ________