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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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βˆ™ 2015-07-15 19:46:19
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Q: If you owe more than the value of a car that was declared a total loss how much does the insurance company pay?
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If your car is declared a total loss how much will the insurance company pay back to you if the car was purchased below book value?

Regardless of what you paid for the vehicle, in most cases,if your vehicle is deemed a total loss, you will be paid the local market value of your vehicle. If you happened to purchase your vehicle for less than that, you lucked out:)


What happens to a car that's declared totaled by the insurance company?

If you want to keep a totaled car, the insurance company will determine the salvage value and deduct that from your settlement check. You can still get liability insurance (if there are no safety issues related to the damage), but not collision or comprehensive unless you have the repairs made.


When the insurance company tell you your vehicle is total and want to take t the vehicle. do the have to pay the loan off?

It gets a little complicated. When a car is declared a total loss (cost of repair is 75% or more of the value of the car) the insurance pays for the fair value of the car. minus any deductible that applies. If there is a loan recorded against the car, the payment goes first to the company that made the loan, anything left gets paid to the owner. But if you owe more than the car is worth, the insurance company still pays what the car is worth (to the loan company). The owner is then responsible for paying anything the insurance company did not pay. You can look up the fair market value of a car on line at nada bluebook or Kelley blue book.


Is it legal for the insurance company not to pay the loan company on a totaled car?

Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference between the market value and the loan value.


Will your insurance company pay you a diminished value if accident is your fault?

No, if it is your fault you are not eligible to received diminished value from your insurance company. It has to be a third party claim, ie the party at fault's insurance company pays the damages if you can recover them.


Does gap insurance cover repossession in the state of NY?

No, GAP Insurance covers the difference between the market value of the vehicle the insurance company pays you after a total loss and what you owe to the financial institution.


What are insurance guidelines for totalling a truck after accident?

If the repair cost is higher that the ACV (actual cash value) of the vehicle, then, the vehicle is declared total loss. That is pretty much the only guideline used by Insurance co.


How do you find out the value of an old insurance policy?

Contact the company


How much do classic cars cost to insure in California?

The cost of insurance for a show car is actually based on the total value of that particular car. You always have the option to purchase additional insurance with any insurance company.


Writing a insurance company to request the value of a life insurance?

Why write when you can make a phone call. Call the insurance company, your agent or your agents office and ask them.


Do insurance have to pay you the value of your wreck?

It depends on the insurance coverage, and what caused the wreck. But allowing the coverage covers the incedent the insurance company will pay the VALUE DETERMINED BY THE INSURANCE COMPANY. Not what you think it was worth. I have about $40,000 in a car the insurance comapny will pay $3,000 for if it gets wrecked.


Can an insurance company total a car with 2 separate claims?

Sure. If the cost to repair is more than the actual cash value, then yes.

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