Question by  Lucrece (11)

What does it mean to be over insured with auto insurance?

I am trying to cut cost and was told to make sure that my auto insurance is not over insured.


Answer by  John (9008)

Being over-insured would mean that you have too much coverage. This could include not only the amount of coverage, but extras like car rentals while your car is fixed.


Answer by  tamarawilhite (17883)

To be over insured is to be paying for too much auto insurance. For example, if you have collision insurance to replace a car up to $20,000 in worth and the vehicle is only worth $5000, you are paying for insurance that exceeds what you could get back.


Answer by  flamiss22 (5081)

You don't want to have more coverage that you can ever file for. If your car is an older model don't get coverage based on a new car rate


Answer by  Rubberchicken (819)

Being over-insured means that you are carrying more replacement value or actual cash value insurance than your property is worth. For example, carrying a $20,000 policy on a $14,000 diamond ring. Most insurers underwrite to value and being over-insured is not a common practice or good business sense for insurers.

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