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If you have your car appraised and then insured for more than fair market value you are purchasing and indemnity as a separate policy. The $$ are the difference between FMV and AV. This is no different than buying stop loss coverage on a vehicle. Stop loss pay the difference of what you owe the bank on a car versus it’s fair market value. Once this coverage is bound you will not have any legal hassles. The second policy kicks in regardless of fault, and it’s up to that insurance carrier to make subrogation demands if they feel its warranted
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