I have a 2002 toyota echo 4dr sedan i just checked for the price value of it and its $7,990 so about $8,000 what iam wondering now that the car is totaled are they gona send me a check for $8,000 or whats gona happen, cause i asked my dad and his no help he just says "good luck" so freakin anoying man. so what do you think?
2007-10-29 10:04:10 · 5 answers · asked by o_O ? 2 in Cars & Transportation ➔ Insurance & Registration
When a vehicle is a total loss - the insurance company does NOT pay the amount of your loan. It is possible to owe more than the car is worth (or be "upside down") on your loan.
The insurance company will settle with you based on the Actual Cash Value (ACV) of your vehicle. This is what you reasonably could have sold that specific vehicle for just prior to the accident, given the vehicle's age, condition, options, mileage.
Most insurance companies have a market survey program they will use.
The ones that use "the book" use the NADA (National Automobile Dealers Association). This book is the industry standard. It is also the one the banks use.
The insurance company will NOT use Kelly Blue Book, Black Book, Red Book or any other book. So don't even waste your time looking the car up in these.
The insurance company will use the actual NADA book. They do have a web site. Sometimes their are variances in the book and the web site value but they usually are not huge. The web site is: www.nadaguides.com
If the NADA web site pulls up a "high retail" value - disregard this value - it is not in the book and you will not be offered it.
The insurance company will evaluate the vehicle. They will then call you up and extend an offer on your vehicle. If the vehicle is financed, first money goes to the finance company and any equity goes to you. There is paperwork that the titled owner of the vehicle will have to sign. They don't just pop a check in the mail to you.
If you have not already done so - go ahead and take your personal belongings out of the vehicle and the tag off of it. Check with your DMV to see if you have to turn the tag in or if you can save some money and transfer it to your replacement vehicle.
2007-10-29 12:13:36 · answer #1 · answered by Boots 7 · 0⤊ 0⤋
Is there a LOAN on it? They will take comparable prices, including from local newspaper ads, and write you a check for the actual cash value. IF there's a loan on it, the check gets made payable to you and the bank, so you can't cash it.
If it's your insurance company paying, they subtract the deductible amount from the check.
Regardless of who's insurance it is, they should ALSO include sales tax and registration fees - as you'll have to pay them on the new car.
2007-10-29 17:11:35 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
is the car paid for? they will pay you the actual cash value of the car minus deductible. if you owe $10,000 and the cars value is only $8,000 then you are responsible for the difference on the loan. this is where gap insurance comes in. in todays world there are a lot of people who are "upside down" on their autos.
2007-10-29 19:05:29 · answer #3 · answered by Queen B 6 · 0⤊ 0⤋
Depends on the terms of the insurance contract you have. Most will pay the high KBB value minus your deductable. There are a few that will pay the loan off "ONLY". Call your agent and ask.
2007-10-29 17:10:45 · answer #4 · answered by rex_rrracefab 6 · 0⤊ 1⤋
they take into account the mileage, the condition. also, if you owe on the car you won't get the money- they will send directly to the lienholder first. you'll get whatever's left over. i'm with your dad on this one- good luck.
2007-10-29 17:11:30 · answer #5 · answered by wrjones559_1999 3 · 0⤊ 0⤋