How does an insurance company pay out on a car that was totaled? Do they go by the Kelly Blue Book price??
2006-09-28 12:34:49 · 5 answers · asked by Sabrina 2 in Cars & Transportation ➔ Insurance & Registration
I still owe $4500. I basically want that paid off, will they go for that? And should I try and get more??
2006-09-28 12:50:48 · update #1
They will pay actual cash value, the price that the same car could be purchased for in the market place. If your car is worth less than the 4500 you owe, then they won't pay off your loan. They will pay what it is worth. You might end up "upside down" on your loan, but the insurance company is not obligated to pay off a loan if the cost of the loan after fees, interest, and the depreciation of your car's value exceeds the car's value. You'll have to talk to the adjuster about that.
2006-09-28 14:17:40 · answer #1 · answered by Chris 5 · 1⤊ 0⤋
If the car is not worth $4500.00 then they will not pay that much unless you happen to have an addendum to your insurance specifically used in such cases. I can't remember the name of it right now, it's something like loan/lease payoff coverage. Then they will cover the amount of the loan but that is it. They usually pay about 80% of what the Kelly Blue Book price is.
2006-09-28 21:05:28 · answer #2 · answered by mlc24_1980 3 · 0⤊ 0⤋
They will pay what it would cost to replace your car with a like model. You can negotiate with them. Some use the NADA book and also Advertised prices in the paper.
I had a Camaro totaled and they tried to buy me off with $1500.
I had all the receipts for the just restored car and they paid my price which was $4800.
2006-09-28 19:46:00 · answer #3 · answered by R1volta 6 · 0⤊ 1⤋
They will not pay more than the car is worth. It is not anyone's fault if you made a bad deal and are upside down. Cross your fingers, maybe it's worth MORE than what you owe!
2006-09-28 21:51:31 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I think they go by a percentage of bluebook I've never heard of them paying too much money
2006-09-28 19:38:42 · answer #5 · answered by bayareart1 6 · 0⤊ 1⤋