INSURER LIABLE FOR CASH VALUE OF AUTOMOBILE Sample Clauses
This clause establishes that the insurer is responsible for paying the cash value of an automobile in the event of a covered loss. In practice, this means that if the insured vehicle is damaged beyond repair or stolen, the insurance company will compensate the policyholder based on the car's actual cash value at the time of the incident, rather than its original purchase price or replacement cost. The core function of this clause is to clarify the insurer's financial obligation and ensure that both parties understand the basis for settlement, thereby reducing disputes over claim amounts.
INSURER LIABLE FOR CASH VALUE OF AUTOMOBILE. The Insurer shall not be liable for more than the actual cash value of the automobile at the time any loss or damage occurs, and the loss or damage shall be ascertained or estimated according to that actual cash value with proper deduction for depreciation, however caused, and shall not exceed the amount that it would cost to repair or replace the automobile, or any part thereof, with material of like kind and quality, but, if any part of the automobile is obsolete and out of stock, the liability of the Insurer in respect thereof shall be limited to the value of that part at the time of loss or damage, not exceeding the maker’s latest list price.