A few days ago, I got into an accident and the car got totalled. The insurance company agreed and totalled the car. Now I still have 1 year left of payments, does the insurance payout cover that?
2007-03-01 08:25:36 · 7 answers · asked by johnmarc007 2 in Cars & Transportation ➔ Insurance & Registration
A few days ago, I got into an accident and the car got totalled. The insurance company agreed and totalled the car. Now I still have 1 year left of payments, does the insurance payout cover that? The accident was not my fault.
2007-03-01 08:26:29 · update #1
Which insurance do you have?
They'll pay off the current value of the vehicle so you should be debt free.
If you owed more than it was worth, the difference between the payout and the amount of your loan will be absorbed by YOU. If you have Gap insurance, you're fully covered.
These are things you check out with them.
.
2007-03-01 09:34:27 · answer #1 · answered by rob1963man 5 · 2⤊ 0⤋
The insurance company will tender you an offer of what they think the value of the car was at the time it was destroyed. That may or may not be enough to cover what you still owe on the car.
BUT.. what you owe on the lease also assumes that you are returning the car (intact) to the owners of the car (remember you don't OWN it... you only lease it).
In your lease documents there is likely a buy out clause which determines what you owe if you decide to keep the car (or wreck it). THAT is the value you need to compare the insurance offer to.
If you do not have a buy out amount then you need to contact the leasing agency to see what that amount is.
Best case for you: The insurance check covers all the costs and maybe has a few $$ left over. Unlikely but then I don't know what either your insurance your lease documents say. Some policies offer a rider that will cover this difference (called a GAP rider). If you have that you are in good shape. If you don't then read on...
Worst Case for you: The insurance check is (much) less then the amount you owe on the car. In which case you will still owe the balance to the leasor.
In the even of the latter if you think the settlement is unfair you can always decline the check and press the matter in small claims or superior court. But keep in mind, the question that such as suit will address is still the same... not what you owe, but what the car was worth.
..
2007-03-01 18:03:32 · answer #2 · answered by ca_surveyor 7 · 0⤊ 0⤋
The insurance will pay for what the car was valued at.. If the buy out on the vehicle was more than what it is worth then you will be liable for the remaining balance.. Because lease payments are much cheaper than loan payments you will probably not get enough to cover the total price of the car.. However if you have GAP insurance they will cover the remaining amount for you.
2007-03-01 16:37:54 · answer #3 · answered by joec_11 3 · 0⤊ 0⤋
You need to find out what the gap amount (the difference between the early termination payoff and the amount that the insurance company paid out on the totalled vehicle) is.
Potentially, you could still owe money. As I haven't read your lease or know the dollar amounts involved, I can't tell you with certainty that you owe nothing. This is NOT the right place to ask this particular question.
2007-03-01 16:36:01 · answer #4 · answered by Sevateem 4 · 0⤊ 0⤋
Most likely not. When you signed the lease, did you pruchase Gap insurance? If you did the Gap insurance will pay any remaining balance if not you are liable for it.
2007-03-01 16:30:23 · answer #5 · answered by ? 7 · 2⤊ 0⤋
you still have to pay for it but the insurence will cover part
2007-03-01 16:29:06 · answer #6 · answered by paintballa 1 · 0⤊ 0⤋
save some questions for face to face silly
2007-03-01 16:32:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋