Even if you owe more to the bank?
2007-08-02 04:43:45 · 8 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
It has full coverage insurance
2007-08-02 04:46:27 · update #1
Insurance companies will only pay the fair value for the car, so if you owe more that what the car is worth, the insurance companies will only pay what is considered fair value. Check newspaper ads and local ads for similar vehicles in your area to justify what you consider fair value. (Insurance companies will typically low ball you). If you can show ads for cars similar to yours, they will typically pay what you can show them to be fair value.
If you have gap insurance, the gap insurance will cover the difference between what the car is worth and what you owe. If you don't have gap insurance, you'll be stuck trying to come up with the difference.
2007-08-02 04:56:38 · answer #1 · answered by hsueh010 7 · 0⤊ 0⤋
Sorry to say but probably not. It is the insurance company's job to buy your title as cheaply as they can. They are purchasing your car just like you did originally. You are entitled to its full retail value as of the time it was wrecked plus sales tax but if you do not ask for it then you wont get it. It is a negotiating process.
9 out of 10 people owe more on their car than it is worth. So when purchasing a car you should always purchase a gap protection policy. Don't ever let anyone tell you different. The only way you would not need a gap protection policy is if you are putting down a considerable amount of money or if you are paying cash. If you pay cash you don't owe a lender anything. If you put down a lot of money there wont be a gap.
What a gap protection policy does: When you buy a car lets just say for 10,000 dollars, you finance it and you put 0 dollars down. That is probaly more than the retail of the car. The NADA book decides that. (*Most car delaerships do not nor do lenders use kelly blue book. Some will use black book) The lender will usually finance about 120% of retail, depending on your credit history. That is why most peolple owe more that it is worth. If you are trading a car and you owe more than it is worth trade in they have some room to cover the difference of what you are trading and what you are buying. Then they have room to cover your taxes, additional warranty coverage and gap protection. Anyway if you bought at 10k then you add the sales tax and any additional purchases, as mentioned above, you will definately owe more than the car is worth. Your insurace as I said will pay some and then your gap protection policy will pay the gap from what it is worth and what you owe.
*Also make sure there is no cap on the gap protection. Some policies only cover up to like $4500.00. So if you owed an additional $5000.00 you would still have some out of pocket expenses.
Some insurance companies sell a gap protection policy and some lenders do at less cost than your dealerships.
Hope this helps,
Former car salesperson
But as mentioned above by some of the other answers don't do anything that could land you in jail. I read this as though this has already happened. If you are contemplating insurance fraud you will go straight to jail.
2007-08-02 05:44:55 · answer #2 · answered by baadwoman 2 · 0⤊ 0⤋
Then your insurance should pay for the car minus any deductible.
If you owe more to the bank than the value of the car you will probably be liable for the difference the insurance reimburses you and the loan value.
2007-08-02 05:12:13 · answer #3 · answered by ♥♥The Queen Has Spoken♥♥ 7 · 0⤊ 0⤋
No. Insurance doesn't pay you what you owe on your vehicle. The insurance company doesn't care. They will pay fair market value for your vehicle at the time it was wrecked. If you owe more than that, it's your problem.
2007-08-02 05:33:33 · answer #4 · answered by Scott H 7 · 0⤊ 0⤋
If you have full coverage and filed a police report yes your insurance will pay for your lost
2007-08-02 04:51:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It's true, the insurance co. will pay the blue book value on your car. They don't care what you owe on it.
2007-08-02 05:10:40 · answer #6 · answered by lifeisgood 5 · 0⤊ 0⤋
dont even think about that its insurance frod and you will go to jail for very long time
if curies yes they will pay you for the car only if you have full coverage on your car , what you own to the bank they will gwt it
2007-08-02 04:48:13 · answer #7 · answered by Zloty M 1 · 0⤊ 0⤋
if its fully covered ,about all they,ll do is finish paying it off,if any money ls left from it you,ll receive it,but they will pay the bank the current amount of what the car is worth,which in most cases is enough to get you out of debt on the car,good luck on it.
2007-08-02 04:48:45 · answer #8 · answered by dodge man 7 · 0⤊ 0⤋