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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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โˆ™ 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.

If your car is a total loss will the insurance company help you fix it if you both pay?

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 worth $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.

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.

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.

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.

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.

Who determines if a vehicle is totaled?

the insurance company- if the vehicle is damaged more then it is worth- it is considered a "total lose" you will get what the car is worth at the time of the accident-not the total value of the car-other pendings vary like full compensation insurance

What is constructive total loss under engineering insurance?

In terms of motor vehicle insurance, when an insurance company writes a vehicle off, they have a dedicated salvage agent, who will give them back a certain percentage of its market value (pre-incident) for every damaged vehicle sold to them. If the cost to repair the vehicle is greater than its market value minus the percentage the insurance company receives, it is known as a constructive total loss (category D), as it is more economic for the insurance company to write the vehicle off than repair it. Equation: Cost to repair > Pre accident value - Salvage percentage return = Constructive write off

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

Contact the company

What is the best value insurance company in NJ?

To find the best value insurance company in New Jersey visit the New Jersey dmv site. This site will guide anyone looking for insurance to contact the right companies or agents to find cheap insurance.

How do you know if you car is totaled?

You need to file a claim with your auto insurance carrier. The insurance adjuster will physically examine the vehicle's damage. If the estimated cost to repair all damages exceeds the total value of the car, then the insurance company will total the car. This means they will write you (or the lender) a check for the total value of the car before damages.Most of the above is true but a car is considered totaled when the repair costs exceed 50-75% (depending on the state you live in) of its actual cash value. If it is totaled you will sign the title over to the insurance company and they will take ownership of the car after they pay you.

At what ratio between auto value and the repair estimate do insurance company total out a vehicle?

Usually if the repair bill meets or exceeds 70% of the cars book value, the insurance company will usually opt to total the car and pay it off. If your car is worth $10,000 and the bill is $7,000, you'll probably get the $10,000 minus any applicable deductibles and other fees.

What do you do if it costs more to fix a wrecked automobile than the vehicle is worth?

If you have physical damage coverage on your policy and the cost to repair the vehicle is more than the value of the vehicle then the insurance company will total the vehicle. In the case of a total loss, the insurance company will pay you the actual cash value of the vehicle less any deductible you have. On all insurance policies, where you have physical damage coverage, the insurance company has the option to repair the vehicle, pay the actual cash value of the vehicle, or replace the vehicle. Companies never replace the vehicle.

When you wreck a car does the insurance company pay for tax and title also?

If your vehicle it considered a total loss, your Total Settlement Value will include Taxes, Transfer Fees, Deductible and your Loan/Lien. *This is with State Farm Insurance, I am not sure about other companies.

How do you find about cash value on your policy?

Check with your agent or insurance company.

If you have gap insurance through both the car company and insurance company will you the insured be entitled to one of the payments to purchase a new car?

doubt it, gap insurance (usually sold by the car dealer or lien holder) covers just that the 'gap' between the acv (actual cash value-which is what the insurance company less your deductible if there is one, for your total loss vehicle) and pay off of your loan

Do you get to keep your car if an insurance company right your car offbut give you predamage value for it?

Generally NO, as in effect when settling with you, the insurance company is buying the car from you. Therefore, the car belongs to the company. If you still want the car, many insurance companys will allow you to buy the car back at the "salvage value."

Is it legal to return items for cash value after the insurance company gives you replacement value for the purchase?


What happens if you are involved in a wreck it's not your fault and the cost to fix the car exceeds the value?

That other insurance company will probably total out the vehicle, depending on the company this could be: actual cash value minus your ded and taxes or blue book value minues ded and taxes or you can salvage the vehicle and buy it back from the ins company