do they just have to pay off loan or should they have to pay replacement cost on top of that
2006-12-23 03:17:03 · 16 answers · asked by paint 1 in Cars & Transportation ➔ Insurance & Registration
Insurance should pay you the replacement cost of the car
2006-12-23 03:23:38 · answer #1 · answered by egotist61 3 · 0⤊ 3⤋
Neither. All the insurance has to pay is the worth of your vehicle at the time of loss, adjusted for condition. If you are locked in a loan where you owe more than the vehicle's worth, there was the option of GAP or VSI (Vender's Single Interest) insurance that would pay the difference between what you got and the loan. Insurance never agrees to pay replacement value. The minute you drive a new car off the lot it has depreciated by several thousand dollars typically. Insurance companies use their own book of values, but you can get a general idea of the worth by checking the Kelly Blue Book ( http://www.kbb.com )
2006-12-23 03:27:26 · answer #2 · answered by oklatom 7 · 1⤊ 0⤋
First off.. I have to laugh when people put "get a lawyer" on here for a totalled car. These are the same people who have no idea what they are talking about and just saw some lawyer commercial on tv. No lawyer would touch a property damage or collision claim like this- and if they did.. they would get the same thing you will get by yourself.. and then take 1/3 of it.
To answer your question- neither. It's a common misconception that the insurance company will pay off your loan- what if you were charged way too much for the car or have really high interest? That is not their fault.
What they will pay is actual cash value of your vehicle. You can find what your vehicle is worth at nada.com. This is a non negiotable amount so dont even bother fighting with them.
2006-12-23 04:16:48 · answer #3 · answered by Anonymous · 2⤊ 2⤋
I was hit by another car 2 years ago. The driver crossed the center line and hit me. My car flipped 3 times across the highway.
I had purchased my vehicle 6 month prior to it being totalled. The guy's insurance payed the value of the car, not what I owed. I got an attorney, it didn't make a difference. I was told I should have bought GAP insurance when I purchased the car. I owed an additional $8000.00 dollars after the insurance paid. Plus the loan company would not let me make payments on it, since I didn't have the vehicle any longer for collateral. Medical cost were not payed 100% either. Word to the wise, next time buy GAP insurance!!!
2006-12-23 03:34:49 · answer #4 · answered by Kris 4 · 2⤊ 0⤋
Neither. Auto insurance is ACV (actual cash value) so you will be paid the approxomate price you would pay for another car, same model, year and condition. The exception is a brand new car on which you have purchased and paid extra for a "Purchase Price Protection" or "New Car Value" package. It is possible that a car is paid out at less than the amount of the loan if a gap policy is not in effect.
2006-12-23 11:27:07 · answer #5 · answered by Fred C 7 · 0⤊ 0⤋
They will pay the "actual cash value" of your car immediately prior to the accident. If your car has pre-existing damage they will deduct for that. If there is no pre-existing damage you should be able to replace it with a similar vehicle with what they pay you -- at least in theory.
What you owe on your car is NOT a factor. If you owe less than the ACV, you'll get enough to pay off your loan with something left over. If you owe more than the ACV, you'll be stuck with paying off the balance. For that reason, GAP insurance is always a good idea in the early years of a loan where you are typically "upside-down" and owe more than the vehicle is worth.
2006-12-23 03:31:07 · answer #6 · answered by Bostonian In MO 7 · 4⤊ 0⤋
Insurance pays ACV (actual cash VALUE) of your vehicle prior to the accident. They will NOT pay for replacement cost or pay off any loan higher than the value of the car.
2006-12-23 10:02:22 · answer #7 · answered by Anonymous · 2⤊ 0⤋
On total losses the insurance company first uses either Kelly Blue Book or NADA to secure the value of your vehicle. Then if your vehicle has pre existing damage (hail, previous accident damage, paint fading, high excessive mileage etc) then that lowers the value of the vehicle unless you live in Texas as no depreciation there.
-Next, the insurance company calls you and gives you two figures: 1. Insurance company obtains vehicle as salvage or 2. You retain vehicle as salvage (salvage value subtracted from value of vehicle). Salvage value determined by calling national auction yard or getting average of salvage value by auction yards in your area.
----The insurance company has no obligation to pay off your loan or give you replacement cost. The figures are based off of either the average retail of Kelly or NADA bluebook values. If you have GAP Insurance from your lienholder (who you make payments) then the GAP Insurance will pay the difference if the Insurance company doesn't pay off the whole loan.
2006-12-23 12:40:32 · answer #8 · answered by Sal G 4 · 1⤊ 0⤋
depending on what type of insurance you had, they could pay what the car booked for at the time of the accident or replacement cost if you had gap insurance. besides that your insurance company pays you and then they collect from the at fault persons insurance if they have any.
2006-12-23 04:43:27 · answer #9 · answered by pamish1 1 · 1⤊ 0⤋
coverage firms could desire to make functional and clean estimates. The consequences in touch with undesirable faith of an insurer far outweigh the extra couple of dollars they could scrape in a sarcasm. in case you have won 3 estimates exceeding their quantity there seems to be something incorrect. What i could do: a million- get carry of an itemized injury checklist from the adjuster. 2- evaluate injury checklist with estimates from the vehicle-physique shops (verify for discrepencies) 3- Presuming no discrepencies you may desire to furnish the adjuster with your estimates. 4- in the event that they dont budge, request a attractiveness of a recomended save for the maintenance. pass there and get an estimate.
2016-10-05 22:43:46 · answer #10 · answered by kuhlmann 4 · 0⤊ 0⤋