West Virginia Adjusters Practice Exam

When settling an auto claim, the insurer may offer the claimant a 'substantially similar vehicle' that is the same make, model, and year as the original car, and can not exceed the original car's mileage by more than

1. 1,000 miles

2. 2,000 miles

3. 3,000 miles

4. 4,000 miles

The correct answer is: 1,000 miles

The correct answer indicates that an insurer can offer a 'substantially similar vehicle' in settling an auto claim, provided that the replacement vehicle does not exceed the mileage of the original vehicle by more than 1,000 miles. This guideline ensures that the claimant receives a vehicle that is comparable in terms of usage and expected wear and tear. Keeping the mileage threshold relatively low is essential for maintaining the value of the settlement, as higher mileage vehicles could be less desirable and potentially have more mechanical issues. The tight restriction helps ensure that the claimant is compensated fairly and receives a vehicle close to the condition and state of the original car. Other options suggest slightly higher mileage allowances, which may not be in the best interest of providing a comparable replacement and could result in a significant depreciation in value, potentially disadvantaging the claimant. Thus, the more stringent mileage requirement is supported by the goal of ensuring fairness and equity in the settlement process.