01.Core Concepts

For a total loss, the policy pays the actual cash value less the deductible For a partial loss, the policy pays only the amount necessary to repair or replace the damaged property of like kind and quality A care can be repaired with parts manufactured by the original equipment manufacturer (O E M) or with generic auto parts (also called after market parts) Insurers can add a clarifying endorsement to exclude coverage for diminution in value from a direct and accidental physical damage loss The insured can also purchase gap insurance