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Typically the insurance companie will pay the cost of the vehicle at the time of loss, they will not pay anything more. If you purchase a vehicle that is higher than blue book, then consider gap coverage to help with this type of situation.
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What option do you have when your car is totaled you made a large down payment and owe the bank but the insurance will only pay fair market value?
%REPLIES% Answer The insurance pays the lender. The lender then has you pay the remaining balance of the loan, after the sum of the insurance payment is taken o…ut. It's so unfortunate, but it happens to a lot of people. Answer Just a note to anyone with a similar situation... When you purchase a new vehicle, you should inquire from your insurance agent, how much extra it would be to add "Lease Gap" or "Loan Gap" coverage. This is generally only available from an A-rated company such as American Family or State Farm, and only for the first 4-5 years of a car's life. The great thing about this coverage, is that if the car ends up as a total loss, the insurance company will pay the difference between fair market value and what you owe the lender, eliminating the excess amount due to the lender. Just a recommendation. Any questions, email me email@example.com Thanks Sean
If your car is worth 12K but you owe 20K on it will the insurance company pay it off if it is totaled in an accident?
You can only collect the fair market value or retail book value depending on the regulations as established by your state's insurance commissioner. The only way you can coll…ect the difference between the Actual Cash Value of your vehicle and the Payoff is through GAP insurance. This is usually offered to you during the purchase of your vehicle but can be purchased later. At the time of purchase, the offer to purchase GAP insurance may seem like a ploy by the salesman to sell you something you don't need. However GAP insurance is a valuable option should this situation arise. GAP insurance is what its name implies, insurance coverage for the "GAP" between the fair market value of your vehicle and the payoff amount.
Can you get full coverage from other insurances on a car if is was declared a total loss by your insurance?
If the vehicle has not been repaired and inspected and title cleaned up, any insurer doing their job will restrict or not write collision and comp. However it does happe…n, but be aware that if an accident occurs this salvage title will show up and you will get substantially less on this next settlement. Any prior damage will not be paid to repair again.
What happens when your vehicle is declared a total loss and you owe more than what the vehicle is worth?
Answer Ok - There are a few things that may very well effect the outcome and answer to your question. I am an Insurance Adjuster in CA, NV, and CO. I am by …no means an expert on the entire nation. Just a Few disclaimers 1. Every state is different - some have similar Laws, but you should also check the laws in your specific state before taking any of this as Gospel. OK! That asside, If your vehicle is deemed a total Loss and you owe a Finance company MORE than the actual cash value of the veh, FIRST! Question the Insurance agency on How they determined the Actual value. They will use one of a few services - ADP or CCC. These companys will do a Market survey and by way of personal sales and dealer quotes in your area - they will find these listings in local publications - they will determine the ACV of your vehicle. Now. YOU Should ALSO be Looking online, In local Papers - At local dealerships, Etc to find out what it will cost to replace your vehicle. If your estimate for a Vehicle with similar Mileage and Similar condition is More than the Insurance Company's - SAY SOMETHING!! it is all negotiation! Find as many Quotes as you can to support your Amount. ONCE you are satisfied that you are getting a fair cash value for your vehicle - You need to find out if you carry GAP insurance. This is coverage that you might have purchased at the time you bought your vehicle. The finance company is usually the one that sells it and it adds about 500 to the total cost of your Loan - depending on the kind of vehcile you purchase. Start by contacting your finance company - if they say that you don't have Gap insurance - Check with any other insurance policy that you may have. Now If you have exhausted all of these posibilities and you still Owe more than your vehicle is worth, Call the finance company right away. with some creative and polite and professional discussion, Most of the time - they will re-write the amount owed into a signature loan - Sometimes they will reduce the amount over all or reduce the interest rate. Other than that - there is not much you can do. Lesson to be learned - ALWAYS ALWAYS PURCHASE GAP INSURANCE!!!!!!!!!!!!! IT IS WORTH IT EVERYTIME!!!!
Is it possible to get more than the blue book value of a totaled car if the insurance company offered 6k but you need 10000 to pay 10 percent in taxes plus finance costs for a new car?
Answer You should expect to get the amount necessary to purchase a similar car in similar condition inclusive of taxes and registration fees. If you owe mo…re on your totalled car than what it is worth you are still obligated to the finance company for the balance of the loan.
Answer The fair market value for your car at the time before you got into the accident. It may not be enough to replace your car, if you have GAP insurance throug…h your bank, then it should cover the cost of replacing the vehicle.
What do you do when you total a car and still owe the finance company more than the retail value that insurance will pay and you have no gap insurance?
Answer 1 I hate to have to be the one to tell you this, but there is not too much you can do. If you feel the insurance company's valuation is wrong, …and the settlement is unfair, you could discusss your situation with one or more ATTORNEYS ["usually," a first visit is free]. Don't go to any attorney that doesn't offer free first consultations, as there are many who do. Otherwise, you're just going to have to make the best of a bad situation. In order to do that, I sugguest: 1. Discuss your situation with your finance company and, with a whole lot of luck, they MAY forgive PART of your note. 2. UNLESS there is a PREPAYMENT PENALTY clause in your loan note, take the ENTIRE settlement money and pay it ALL to the finance company. This gets your balance as low as possible. 3. TO PREVENT DAMAGE TO YOUR CREDIT RATING, AND a lot of continuing collection pressures, continue to make your payments until your loan is fully paid off. Not only will this protect your credit record, and prevent a lot of harassment, it is the right thing to do.
How much will you have to pay to get your car back if it was totaled and the insurance company refuses to pay?
The insurance company will pay you the worth of your car minus your deductible.
If your car is deemed a total loss, the insurance company will only pay up the value of the vehicle. They will have nothing to do with the repairs. If the vehicle is wor…th $5,000 and the damage is $8,000, you are going to pay $3,000 out of your own pocket. Once the insurance company pays you that $5,000, they are out of the picture. Just be prepared for a 'salvage' fee to be deducted from your settlement by the insurance company. That is what they would have gotten for your vehicle if you had surrendered it to them.
If you purchased GAP insurance it will pay the difference between what the insurer pays and the amount left on the loan. If not you need to determine how the insurer came up… with the amount they say your car is worth. If they used a company called CCC you have a chance to get more money buy questioning how CCC came up with the value. Somewhere on the net is 20 questions you can send to the insurance company about how they detirmined the value of your car if they used CCC that they can't awnser and helps you get a more fair evaluation of your cars worth.
Yes. Collision coverage pays for damage to your vehicle, minus the deductible, regardless of who is driving it. Also, if you loan your vehicle to someone they are considered a… permissive driver and you are liable for damage they cause in your vehicle even if they have their own insurance. Insurance always applies to the car not the driver.
When an auto is totaled and the insurer takes the auto and pays the insured the actual cash value of the car at the time of the loss this is an example of?
Total loss payoff
Attorney General,s office where you live. Also try the Better Business Bureau Added: Contact the State Insurance Commission of your state and file a complaint.
No. That would still be your responsibility.
Does an insurer have to pay you the value of the wreck recovery if a car is a total loss and under insured?
They will only pay up to the limit on the policy.