Just got involved in an accident and your auto insurance company declared the car a total wreckage. The car is just more than five years,  has very low mileage and in excellent condition. Even so, the auto insurance company offers only faction of the worth you think the car is good, and certainly not good enough to replace it with the same vehicle. The financial crisis has faced more than one owner as more insurers apply  very aggressive methods in identifying formulas for depreciation value of a vehicle.

Perhaps, the auto insurance company agrees to fix the vehicle, but pay only for "generic" spare parts from third party manufacturers often located in third-world countries, like Thailand,  Taiwan,  or China.  The end product is a reduced quality of the repair, and a depreciated value of the costs that go into the business over time, especially if your car is a high-end, luxury model. Or if you find that the rent to repay insurance companies only cover the rental payment of a minimal economy car when you actually  need a huge sedan,  or minivan, SUV, or are used to drive a Cadillac, Mercedes,  or Lexus.

Just like any other commodity, you get what you pay when you are looking for insurance, and often the few dollars saved by buying a "low cost" auto insurance policy is not just to demand payment in the event of an accident or the vehicle is stolen. Here is a list of questions you should ask when buying auto insurance or if you plan to change auto insurance companies: 

1. Does the auto insurance policy cover replacement of the original manufacturer's parts? Some auto insurance policies will only pay for "generic" auto parts from third-party manufacturers. 

2. How much refund will I receive if my car is "destroyed"? Ask about adding an "agreed value" (or "declared value") to the clause of the auto insurance policy. 

3. Is the cost of renting a comparable car covered? Lower prices of auto insurance policies may come with per-day and total spending limits that barely cover for the rental of an economy car. 

4. What quality of claims service can I expect? Even businesses that sell at low prices, auto insurance policies promise to deliver an excellent service for compensation.  But  it is still best to seek a second opinion from the company's site or advertisement. 

5. Does the policy cover the full cost of repairing cars in my shop? Some companies may do what you have to take the price set by their repair shops, which could not meet their quality standards.

6. What are the limits of responsibility in the auto insurance policy? If you compare the price of auto insurance policies, make sure you compare it with the same policy limits of liability, including coverage for uninsured motorists. 

7. Will I be reimbursed for the cost of the night if my car breaks down far from home? Standard industry policies do not cover the costs of lodging, meals, telephone calls  consumed to rearrange their plans.

8. Will I get lower rates if I do not make claims for several years? Many companies offer discounts to drivers with no accidents or moving violations for five years. 

9. Will I get a discount I get several types of insurance policies from the same company? Most companies offer discounts when they you get say an auto insurance and home insurance from them-- just ask how.