Suppose you have Asset Protection Insurance, and your car is stolen or destroyed in an accident. In that case, the policy will reimburse you for the difference between the amount you paid for the vehicle and its current worth.
If your car or truck is ever stolen and the loss is determined to be total by your insurance company, your asset protection insurance, also known as API, will kick in to help cover the costs.
What's the process?
Suppose your automobile is taken or your insurance provider determines it is a total loss. In that case, you will be compensated based on the current market worth of the vehicle rather than the amount you paid for it initially. This is often a considerably lower number, given that most autos see gradual weight loss over time.
API will pay the deficit so that you do not have to use your savings or take out other loans to purchase a new car equivalent to the one you lost.
Suppose your automobile is stolen or written off. In that case, your commercial insurance company will likely only compensate you for its current market value, less than the amount still owed on any loans or leases you may have taken out to purchase the vehicle.
Whether you wish to replace the car or pay off the present loan, you must calculate the difference between the two options.
If the total amount of your outstanding debts or the net invoice price you paid for your vehicle is more than the current value of your car on the market, your asset protection insurance will reimburse you for the difference.
