Will insurance replace the wrecked car with a new car?

Question

A man races a new car he just bought from a car dealership on a freeway, lost control and totally wrecked and split the car in two. My question is, will his insurance cover the wreck and gets him a new car?

search this: "River Oaks racing wreck splits sports car in half."

Answer 1

I did the search and that car is messed up. The first thing is the driver should be thankful he is alive. Second, how is a 20 year old affording that car. Last, the answer to your questions, as someone who worked in a car dealership, I only hope that he had insurance on the car. Many dealerships can make the necessary changes to the insurance when a car is being traded in. Some dealerships leave it to the buyer to get the appropraite insurance. If he had a loan on the vehicle, the dealership *would* of needed proof of insurance for the bank.

If everything was done correctly, the insurance should cover it. The only thing, he won't be buying a new 350Z. What he paid for the car and what it was worth when he pulled on the road are two different things. Not to mention, getting insurance again for him for the next 10 years, he won't want a sports car, he will be happy to have a car.

I think he just be happy to be alive and his friend as well.

Answer 2

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Answer 3

Nope. Assuming he is even covered, which is open to doubt if he was doing an illegal act like racing, but just to assume he has full coverage including collision, insurance will give him the value of the vehicle at the time of loss, less any deductible amount he signed up for. No, they won't buy him a new car. No, they won't pay off the amount over what it's worth and what he owes (unless he also has GAP insurance). Why would there be a balance? Because the instant you drive a new car off the lot depreciation kicks in.

None of this will go to him unless he paid cash, otherwise it would go to the finance company.

Answer 4

If your car is less than 4 years old, and properly insured, the insurance companies have to replace all the parts with new parts, no junkyard parts. Now they may and try and tell you different, but don't listen to them. So If this guy wrecked a new car and it is beyond repair, yes, a new one should be on the way to him shortly, settle for nothing less!

Answer 5

Assuming it will be a covered loss it depends what company he has. Most insurance companies will give the actual cash value of the car. The minute a new car is registered it takes a big dump in value. A couple companies will give replacement value for the first year of ownership on current model year vehicles.

Answer 6

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RE: Will insurance replace the wrecked car with a new car?

Answer 7

Depends on if the car he just bought was replacing another veh he had insd. If it was then any coverages from his other veh would carry over to the new veh. But generally if he was racing on the freeway that isn't going to be covered under his insurance, its in every policy that racing is excluded. But his collision coverage may cover damages to the veh. And no replacement coverage unless he has replacement coverage on his policy.

Answer 8

If he's lucky, the insurance will pay him the ACV (actual cash value) before they cancel his insurance coverage. There may very well be grounds for denial based on his so called 'race'. Unless he bought gap insurance he will be lucky to get 80% of the cost of a replacement vehicle.

Answer 9

here presumes which you reside in the U. S.. First, regardless of fault, you need to no longer have contacted the different party with out criminal expert. 2d, your question says "they haven't any coverage", yet then you definately pronounced that the "accountable party...already SWITCHED coverage." that's it? If the "accountable party" had coverage on the time of the accident, then *it* is the to blame organisation. Switching coverage companies after-the-reality is beside the point, for this reason; the post-accident organisation is by ability of no ability going to deal with the declare (i ask your self why the "accountable party" replaced agencies?). 0.33, regardless of fault, you may want an criminal expert's help (or did I say that, already?). Fourth, you need to touch the "unique" organisation. do no longer touch the "accountable party" quickly. If the "accountable party" or her criminal expert or different representative calls you, tell them, in a well mannered way, that your coverage organisation and/or criminal expert are coping with it (this is not significant no count in case you have collision or no longer). 5th, some States require a "condo" rider in the coverage, to cover merely such contingencies. regrettably, it hardly is for greater effective than $25/day, and frequently has a shrink of 30 days. you may nicely be greater advantageous off getting a chum that can assist you, or take mass transportation. 6th, you probably did no longer say how previous your vehicle is. If this is greater effective than 5 years previous, and not a luxurious sort, or if this is e book value is below $a million,000 (i.e., a ways below it would value to repair or purchase used), then your coverage organisation would evaluate it a "finished loss", and the two aid you recognize to drop it, in case you do not have "collision", or you will get just about no longer something, even if in case you have "collision" (you pronounced you do not have "collision"). needless to say, if it rather is a clean vehicle, then you definately would have "collision", so I presume that isn't the case. seventh, you're only "screwed", in case you lose you cool approximately this. sure, this is frightening and problematical, yet stressing ought to no longer help. you need to stick to the above advice, and enable calmer heads be triumphant. good success!

Answer 10

If he carried comp/collision, the damages would be covered, however, if he owed more for the car, then the car was worth, and he didn't carry gap insurance to cover that, the loan would not be paid in full and you would be required to continue to carry insurance on the car, even if it's not driveable.