2006-09-05 11:21:38 · 12 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
Blue Book Value unless you paid extra for "Gap Insurance",,,
If you didn't this time get it next time... it only costs a few dollars more and the protection is SOOOOOOOOOOOO worth it.
2006-09-05 11:25:26 · answer #1 · answered by kchivers-carter@sbcglobal.net 2 · 0⤊ 0⤋
1
2016-09-26 06:22:08 · answer #2 · answered by Elizabeth 3 · 0⤊ 0⤋
The insurance company will only pay the blue book value which means that in some cases, the loan will not be paid off. Not fair, I know but there's something called GAP insurance that may have been offered when you bought the car. GAP insurance will make up the difference if the insurance company does not completely pay off the loan.
2006-09-05 11:26:46 · answer #3 · answered by Sabina 5 · 0⤊ 0⤋
They pay for the lost value. Which is the Book Value of the Vehicle.
To those who say this is wrong... What is wrong is for you to be an idiot and borrow money to buy a car and get Upside Down on the loan to book value. It is not your insurance companies responsibility to protect you from being STUPID with your MONEY!
Too bad about your car though... Both my Brother and my sister had a car stolen in the past. One recovered... one involved in High Speed chase like on COPS... tires blown out by Stop Strips... Driven on the rims... wrecked on all sides. Even broke every window on the car during the chase... But technically it was recovered too! lol Good Luck!
Learn from this experience! NEVER borrow money to buy a Car ever again! Just buy a cheap car for cash, take your "payment" money and put that in savings every month and when you have enough CASH saved up then you can buy a better car!
2006-09-05 11:43:48 · answer #4 · answered by FreedomLover 5 · 0⤊ 0⤋
It would depend on how much you still owe on the car. If you owe less than the value of the vehicle, then it would pay off the loan. If you owe more, you might want to check with your lender to see if you have GAP insurance (this would have been purchased when you bought the car for a 1 time fee). If you have GAP insurance, they would pay off the remainder of the loan.
Insurance CO's DO NOT USE BLUE BOOK!!!
They would use electronic sources like: CCC, ADP, NADA, etc... and from these sources, they would determine the value and from this amount, you will know if they will be paying off your loan.
2006-09-06 02:21:32 · answer #5 · answered by deadcars42 3 · 0⤊ 0⤋
Listen to 'Freedomlover'. A car insurance policy is NOT replacement cost, it is market value based. Your company will use NADA, Kelley etc. for a guide and deduct for mileage and condition (which may be academic if the car isn't found). If the actual cash value is less than the loan amount -- yep, you guessed it, you have to pay the difference. A car dealer will try to 'roll' the difference into another car & loan. NEVER do this! You will be better off getting a part-time job and save up for a beater until you can afford a really nice car for cash.
2006-09-05 13:21:37 · answer #6 · answered by Anonymous · 0⤊ 0⤋
insurance will pay only the value of the vehicle at the time it was stolen and the condition it was in. If windows down or doors unlocked, insurance will not pay. if either of those are true, hope the insurance doesnt find it. if not true, then hope it is found damaged, and then insurance will be liable for repairs and or replacement. replacement value will always be the depreciated value of the vehicle not the loan agreement.
2006-09-05 11:29:05 · answer #7 · answered by evin p 1 · 0⤊ 0⤋
It pays neither. It will settle with you for Actual Cash Value (cost to get the same car like yours in the market). You may owe more on your loan than the vehicle is worth, in which case you will be "upside down" unless you have gap insurance.
2006-09-05 12:56:06 · answer #8 · answered by Chris 5 · 0⤊ 0⤋
Usually blue book value.
2006-09-05 13:44:45 · answer #9 · answered by mister ss 7 · 0⤊ 0⤋
MORE THAN LIKELY THE INSURANCE WILL ONLY PAY YOU WHAT THE BLUE BOOK SAYS THE CAR IS WORTH.
2006-09-05 12:09:04 · answer #10 · answered by Anonymous · 0⤊ 0⤋