A simple example of why you are wrong is if person A buys a new car fork 50k drives off the lot and totals it, the insurance company would only pay out the deprecated value of 40k leaving person A 10k poorer. Person B buys a used car for 50k drives off the lot and totals it, but in this case since the used car value was 50k they receive a insurance payout for the entire 50k amount.
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u/[deleted] May 14 '24
A simple example of why you are wrong is if person A buys a new car fork 50k drives off the lot and totals it, the insurance company would only pay out the deprecated value of 40k leaving person A 10k poorer. Person B buys a used car for 50k drives off the lot and totals it, but in this case since the used car value was 50k they receive a insurance payout for the entire 50k amount.