A truck driver of a huge garbage truck fell asleep at the wheel and crushed my parked suv. Both insurance adjustors(mines and theirs) agreed that the suv is a total loss. The other party insurance company is paying out the book value of the suv but not what I still owe on the loan. They want me to pay for a car I no longer drive. NOT FAIR! How can I get the other insurance company to pay out the full amount of the loan? Do I have to sue for property damage? I have worked hard for two years paying on this suv. Is all of that money just gone? This happened in NY state.
2007-02-12 16:33:55 · 8 answers · asked by terry j 1 in Cars & Transportation ➔ Insurance & Registration
In most areas what they owe you is the actual cash value of the car. Unfortunately, what happens to many people, is that the value of the car depreciates faster than the loan. Particularly if you financed close to 100% of the value, or if you rolled over another loan and financed over the value of the car. Most insurance companies will not pay out the full value of the loan.
Check with the company you have the loan with. Often times they have what's known as GAP coverage. This will cover the amount over what they value of the car is and what your loan is.
Even if you sue - the judge will only pay you what the law provides for the car.
Make sure they are offering you what the law requires for your state. Contact the insurance department to determine how total losses are valued in your state and then ask for the documentation from the insurance company that they have followed this procedure.
And for your next car - if possible - put down a larger down payment, or at the very least, check for GAP coverage.
2007-02-12 16:45:52 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Either insurance company, doesn't matter which, is only required to pay the actual cash value of the car. This is a seperate issue from your car loan. But to answer your question, they don't owe you for the loan, the owe you for the damage to the vehicle. I would take settlement from whoever gives you the higher offer.
I would find out if you have gap insurance, either on your loan or with your insurance company. Gap insurance is a seperate coverge from collision.
I would also ask our finance company if you can do what's called a substitution of collateral...basically, you take the check & get another vehicle & your existing loan & terms remain the same. Some lenders do this, some don't.
2007-02-12 16:59:32 · answer #2 · answered by bundysmom 6 · 1⤊ 0⤋
You can try to prove your vehicle was worth more than the book value, by virtue of lower mileage, superior care, more accessories than standard model, etc. Book value is the starting point, not the ending point. Insurance is ACV (Actual Cash Value) of the vehicle at the time of loss, so you will get more if it is worth more, but you can also get less if it is worth less. Gap insurance would indeed have been an asset that would have covered a difference between the loan at time of loss and the insurance pay-out.
2007-02-12 16:48:56 · answer #3 · answered by Fred C 7 · 1⤊ 0⤋
Good luck if you listen to people on here who have no idea what they are talking about that are going to scream "sue them!" or "get a lawyer".. i havent even looked at the answers b/c im sure thats what they will tell you.. truth is.. they dont know crap.
Insurance ONLY owes your actual cash value of your vehicle. Your telling me that just because you paid too much for your car and are upside down on your loan they should owe you for that? Its not insurance fault you made bad financial decisions....
I repeat... THEY ONLY BY THE LAW OWE YOU ACTUAL CASH VALUE... you get NO MORE THEN THAT. argue all you want.
Think about it? Say someone gets completely scammed on a loan and has a 1990 escort and owes 15k on it b/c they added credit card debt to the loan or something.. insurance you owe that..
grow up... own up to your financial mistakes.. enter the real world.. and dont waste your time arguing
2007-02-13 00:40:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Whenever you purchase a new vehicle, you should always purchase GAP insurance, this would cover you completely. When a vehicle is totalled, all that any insurance has to pay is the blue book value of a vehicle, rather or not you owe more on it. Sorry, there isnt much that you can do.
2007-02-12 16:43:44 · answer #5 · answered by Gary S 5 · 1⤊ 0⤋
You are SOL. Obviously you bought with little or no money down and didn't take the GAP insurance.
Sue them for property damage? They are already offering you what its worth, how far do you think you will get? Just count it as one of lifes lessons.
2007-02-12 17:13:38 · answer #6 · answered by Anonymous · 1⤊ 0⤋
My truck became hit via somebody who fell asleep on the wheel. My truck became parked on the line and is seen totaled. It in basic terms had 50,000 miles on it, and that i had it for 17 months in basic terms putting 10,000 miles on it. i prefer the insurance business enterprise to furnish me replace cost and supply me yet another truck equivalent to what became lost. I paid 17,000 money out the door with replace cost extra insurance out the door. What would desire to I do?
2016-09-29 01:11:39 · answer #7 · answered by ? 4 · 0⤊ 0⤋
your best bet is to talk to a lawyer in your area
2007-02-12 18:31:52 · answer #8 · answered by jbochy77 2 · 0⤊ 1⤋