Bad Car Accident?

Question

I was in a car accident, I still owe money on the car, Its brand new. I'm at fault and yeah, it sucks. My father says I want the car to be totalled, but if that happens then I will be without a car and ins will not pay off the loan, is that correct? I don't have gap ins.

Answer 1

Most states require vehicles to be 'totaled' when cost of repair exceeds value or a percentage of value (60-80% most times) of the vehicle. Value is what the vehicle was worth prior to the loss, not always payoff. If it is totaled you will be required to cover or gap the remaining balance owed to your lein holder. Cross your fingers, it may be repairable.

Answer 2

If you owe more on the vehicle than the total loss value, then the loan won't be paid off as part of the settlement. Some people, when that happens, roll the remainder of the loan into the next loan when they buy their new car ( I don't advocate that, but I've heard of it happening plenty). Gap insurance is very good especially if you don't put any money down and finance all of it. It doesn't take much time for the vehicle to depreciate past what you owe on it.

If it's not totalled then you'll be paid to get it repaired. However, you don't get the option. If it's totalled they won't pay you for reparis because the repairs cost more than the value.

Answer 3

Well, they're kind of right.
The insurance will pay off on the loan against the car first and before you see any money.
Example; you owe $15,000 on the loan.
car is worth $10,000.
You get nothing and and your insurance company will give the loan company the $10,000 toward the pay off price and you get to pick up the other $5,000.
So, if that's the case, you do not want them to total it. Let them fix it.
If you owe less than the value say you owe $5,000 and it's worth $10,000, then the insurance company will pay it off and send you a check for the remaining $5,000.
Check with kellybluebook.com or other such sites to find the value of your car. They'll want the year, make, model, body style, mileage and extras that maybe on it, like cruse control, stereo and that kind of thing.
The insurance comp will be looking at, Value vs Repair cost when and if they decide to total it. If it'd cost more than the value to repair it, they'll total it.
Sorry to hear about the accident, I experienced the same about 6 years ago. Totaled a beautiful Buick Regal.

Answer 4

Your insurance on a new car will pay the balance of the loan when the vehicle is totaled. You definately want them to declare your car a total loss. That way you can start again with a clean financial slate and a decent car.

If they try to fix the vehicle, you may not like the results and you will be paying for a severely damaged vehicle. Hopr your insurance is still affordable after your accident.

Answer 5

Your father is hoping to get more money from insurance if it is totalled. If it is totalled and it is a new car , they should give you close to the price you paid. This is just a lesson in life.
1. Cars are a horrible investment.- buy used cars and don't worry about it.
2. Buy a car that you can pay cash for- don't take out loans.
3. get really good insurance.
I had something similar happen to me when I was younger.It is a drag.

Answer 6

The insurance company will only pay what the vehicle is worth. I don't know what you owe on the vehicle or what type of vehicle it is, but I do know that in most cases people owe more on their vehicle than it is worth. Just remember to purchase gap insurance when you get another vehicle. I also agree with your Dad, if the vehicle is not totaled, when you get it fixed put it up for sale!

Answer 7

I hope you weren't badly hurt in the accident and that no one else was injured either.

Here's what will happen. IF the insurance company totals your car, they will give you a check for the value of the car. It's likely that this check will be LESS than the car loan. Therefore, you have no car and you have an outstanding loan to pay off!

Answer 8

The insurance should pay off a certain amount of the loan if not all of it. That is what insurance is for. Call the insurance company and talk to them. They deal with that kind of stuff everyday. Remember that you are paying them to do a service and they owe you answers. Good luck.

Answer 9

Oct. 3, 1999 i grew to become into making use of with my 3 toddlers interior the automobile. It grew to become right into a sixty 5 mph. i grew to become into making use of approximately 68mph while a tire blew out. i did no longer understand what it grew to become into however the automobile started shaking, my instinct grew to become into to place my foot on the wear and tear. That did it, the van flipped on the drivers part the place my arm broke the glass. I picked myself up, leaned over my son interior the front seat to shelter him and carry him returned with the aid of fact the van moved to the roof and skidded for about a hundred feet earlier coming returned to its wheels dealing with backwards around the line. I appeared on the youngsters, 2 have been advantageous, no longer a scratch, my son interior the main rear seat had his face lined in blood. It grew to become into my very own, and it took consistently yet all i ought to think of grew to become into "God do no longer take my teenagers" Please, each and every physique placed on your seatbelts. The law enforcement officers and common responders reported if we does no longer have been we could have likely all been killed. The van grew to become into pancaked. My son had 8 stitches and that i nevertheless have glass in my arm-yet we are all great. i in my view teared up right here. Scariest 2nd of my existence.

Answer 10

if its brand new, then you want it fixed cause youre right youre upside down and the insurance wont pay it all off.