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What do you do if the insurance for a totaled car does not pay off the car loan?

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I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and showed them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to small claims court and filed suit on the driver of the other car. The person's insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can replace the car for what they want to give you.  Ultimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe--only what the car is worth.  The insurance company will only give you the value of the vehicle, as per the "Kelly Blue Book". They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous damage.
If the accident was another driver's fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for "Kelly Blue Book", and get the estimate of the car's value. If it is more, then dispute it with the insurance company. Print the page out.  When you bought the car new or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not offer it to you and some just don't know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a girl hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even though she did not have the car. The courts won't do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.
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