What will your insurance company pay in the event of a damage claim?

The insurance company will typically pay the actual cash value of the vehicle at the time of damage, or the cost to repair the loss or damage, depending on the specifics of your policy and the circumstances of the incident. This means that if your vehicle is deemed a total loss, the insurer would provide a payout equivalent to the market value of the car just before the damage occurred. Conversely, if the vehicle can be repaired and it’s more financially sensible to do so, the company may cover the cost of those repairs.

In essence, by selecting both the actual cash value and the cost of repair as applicable options, you're recognizing that insurance coverage can be flexible based on the situation. The insurer's responsibility to settle claims is designed to restore you to your pre-loss condition, whether that means compensating you for the loss of your vehicle's value or facilitating the repairs necessary to keep it operational.