September 6, 1989|By Suzy Hagstrom of The Sentinel Staff
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Given the American affection for driving, it's no admiration that automobiles are the admired backing of abounding people.
Such adulation diplomacy can about-face tragic, however, back cars are burst or stolen. Having allowance provides little alleviation to the aboveboard or apprenticed policyholder who learns too backward that advantage for a new car will be its attenuated bulk rather than the bulk of money bare to alter it.
Although the abstraction of ''replacement cost'' auto advantage is an old one, according to experts, such behavior are difficult to find. Abounding auto insurers, including the nation's better and best-known ones - State Farm Allowance Companies and Allstate Allowance Group - do not action such coverage.
Because backup auto allowance is not broadly available, insurers affairs it may accredit to it as a new product. The latest business angle comes from Inter-Atlantic Allowance Services Inc., an allowance allowance based in Coral Gables.
Inter-Atlantic's new policy, alleged ''COVER'' or Complete Vehicle Replacement, comes from two British insurers, Walbrook Allowance Co. Ltd. and Anglo-American Allowance Co. Ltd. Afterwards experimenting with COVER in South Florida in May, Inter-Atlantic has fabricated the artefact accessible in Florida, California, Maryland, Pennsylvania, Virginia and the District of Columbia.
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To buy COVER, however, a actuality charge accept a accepted auto action with Inter-Atlantic. The allowance allowance affairs to annihilate that bolt in October and accomplish COVER accessible to everyone, said Felipe Palacio, carnality admiral for Inter-Atlantic.
Similar to added backup bulk auto policies, COVER serves as a ''rider'' or ''endorsement'' to a accepted policy. The accepted auto action pays the car's attenuated value, while the addition pays the aberration amid that bulk and the amount of a new car. CIGNA Corp., Country Companies, Kemper Group and Travelers Corp. are amid the providers of backup bulk auto insurance. Their behavior may not be accessible in Florida, depending on the company.
Prices and added capacity of backup bulk advantage alter amid the carriers. Inter-Atlantic's COVER applies to automobiles three years old or less. For a car that originally bulk amid $15,001 and $25,000, COVER is $90 the aboriginal year of its life, $180 the additional year and $270 the third year.
Whether backup bulk allowance is advantageous depends on the alone consumer, what he can allow and what makes him comfortable, said Philip L. Harris, an allowance specialist for the Florida Allowance Department's Orlando office.
Cars lose bulk as anon as they are purchased, Harris said, and accepted auto behavior pay alone the attenuated value. For that reason, some individuals acquisition themselves authoritative car payments continued afterwards their cars are destroyed, he said.
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''It's not abnormal for me to accept calls from bodies who say, 'I got a adjustment for my car, but I still owe $2,000,' '' Harris said. Backup bulk allowance is addition expense, however, so a customer charge accede the affairs of his car actuality demolished, he said.
A backup action is are added advantageous for U.S. cars, Palacio of Inter-Atlantic said, because they tend to lose their bulk faster than adopted vehicles. ''American-made cars accept the jinx of depreciating added quickly,'' he said.
Insurers that don't action backup bulk allowance tend to banter it as actuality abhorred or unnecessary.
Allstate discussed alms backup advantage but absitively adjoin accomplishing so, said Mark Hays, a business administrator at the company's address in Northbrook, Ill.
''It's a gimmick added than annihilation else,'' Hays said. ''We didn't anticipate there would be a lot of absorption in this artefact amid our customers. If you buy an big-ticket car and drive it out of the lot and it's demolished, our accepted action replaces that car.''
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Allstate is amid auto insurers that don't await alone on dejected book or attenuated ethics back reimbursing policyholders for their cars, Hays said. ''We attending at the mileage, the action and bazaar values,'' he said. ''We don't go absolutely by abrasion tables.''
Bob Sasser, a abettor at State Farm's address in Bloomington, Ill., said, ''Usually, back there's an accident, bodies will accept their cars repaired in best cases. It's actual attenuate back a car is totaled. . . . We don't see abundant appeal for this product.''
Thomas Harkenrider, a sales abettor in Longwood for Commonwealth Allowance Co., disagreed. ''I accept a lot of bodies who ask me about backup bulk allowance for automobiles,'' he said. ''Not abounding companies action this. I'd be blessed to advertise it.''
Harkenrider would additionally be blessed to buy such a policy. He owns a 1989 Chrysler New Yorker that bulk about $21,500 new. ''If it were totaled, I would get about $15,000 for it,'' he said. ''The 1990 models are already advancing out.''
New Car Replacement Insurance
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