I was in a car wreck, the insurance company wants to take away my car is this right?

Question

I don't own my car, so instead of giving me the cash value of the car, the insurance company will the pay the remainder i owe to the dealership and take the car away. This doesn't sound right to me because the wreck wasn't my fault and yet I end up losing my car while the other party had no damage to his car. I get penalized for doing nothing wrong, is there anything I can do?

Answer 1

That's how a total loss works. They pay you the value of the car (or in this case the lienholder because you owe as much as the car is worth on the loan) and the car is signed over to the insurance company. Would you like to be paid AND keep your car? That would be silly. If you wanted to keep the car, you'd get salvage value for it, but you'd still owe on your loan, you would have gotten too little for it, and you'd have a damaged car.

If the other person's vehicle had been totaled and he owed as much on it as it was worth the same thing would have happened to him. But it wasn't.

If you had not had a lienholder or if you owed less than the value you would have ended up with some $ in your pocket to help you buy another car.

Answer 2

Well, here's what happens.

They aren't paying the dealership. They are paying off either a finance company or leasing company. Either one of those entities has a vested financial ownership interest in your car. That means, they get first crack when this happens. Bascially, the insurer pays off the amount you owe on the car.

This is perfectly normal and your insurer will go to the other parties insurer to get reimbursed (that's known as subrogation)

If the amount the insurer pays exceeds the loan value, your finance company or lessor will return the balance to you. If it is less than what you owe, you'll have to pay off the balance to whoever is providing your loan or lease.

You probably should file a claim against the other guy's insurance, especially if you owe more on the car than what your insurer pays for it and you claim you were not at fault.

Answer 3

Find out what your car was worth before the collision from a dealer, and take mileage into consideration, then calculate what you have paid (including taxes) on the car in the past (this does not include upgrades such as stereo systems), how much you owe the bank/finance co. Remember, your car depreciates in value as well as the number of miles used every month so don't be surprised if the dealer quotes you a lower value for your car. if you feel that you should get money back, after you've checked this out, refuse any settlement they may offer and tell them what you feel you should get (also show them your estimates and where / how you got them)

Remember, if an insurance co. brands your car irreparable you will have a hard time lifting the brand from the car if you want to keep it.

If the car is worth more then you owe, your entitled to the difference...

if its a unusual car or a rare model, have them repair it !

Answer 4

When your vehicle is totalled, the insurance company compensates the owner of the vehicle with the fair market value and then sells the vehicle to a salvage yard. You do have the option to "buy" the car back and have the repairs done yourself if you wish to keep it. When an insurance company sells you the car back it is generally for the amount they would get from a salvage yard which isn't usually very much. I've seen them sell back for as little as $200 but it all depends on the make and model of your vehicle. So, to answer your question, yes they can do that but if you want to keep your car, ask how much they will sell it back to you for.

Answer 5

The ins. company should give you market value of the car. If that value is equal to the payoff on the loan, then you are at square one again. No car, no loan balance. I'm assuming that is the case here. Consider yourself lucky...a lot of people are upside down on their cars and when the car is totaled, you end up without a car AND owing the remaining balance of the loan.

Answer 6

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Answer 8

like most of the others have said, the insurance company in question are fully in there rights to do this. but as the accident was not your fault you can claim for another car aswell as any injuries you may may have had, not to mention loss of earnings through not being able to get to work, from the person who did cause the accident. thats if they do admit liability if not it can be a long court case that could end up seeing you out of pocket.

Answer 9

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RE: I was in a car wreck, the insurance company wants to take away my car is this right?

Answer 10

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