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Auto Insurance Fayette Kentucky KY

Reader’s Question:

We are thankful that nothing serious really happened to my brother when he got into an accident while driving here in Fayette, Kentucky. But his car has been totalled so he needs to get a new one. Will the auto insurance company pay for the sales tax and registration fees for his new car?

Nicola

Fayette, KY

The state of Kentucky mandates car insurance providers to shoulder the sales tax once your brother replaces his totalled car with either a new or used car. However, I suggest that your brother would have to request for it because his auto insurance provider in Fayette, Kentucky will not initiate to pay for the sales tax forthright.

Even in some states that don’t mandate sales tax reimbursement, any driver could request for it. A lot of car insurance providers will not turn down the application because the insurance policy compels them to make you “whole.” This simply implies that you have to get back all your expenses for putting you right where you were prior to the accident. Still you have to keep in mind that the tax would be computed based on the value of your brother’s vehicle before the accident. If the insurance provider set a value for his vehicle at $10,000 and he buys a replacement one for $15,000, the tax will be gauged on the $10,000.

Tags: auto insurance, auto insurance company, car