Does anyone know what happens when you get into a car crash and?

its not your fault and the car is deemed trashed by the insurance compay. HERE'S THE PART I WANT TO KNOW ABOUT....so the car isn't paid off. will the insurance company just pay for the totaled car and call it even? or will they pay the car off and give you money to get a new one?

my mom was in a car accident recently and it wasn't her fault (police reports side with her it was a hit and run other cars were involved she was one)..i think they'll just pay off the car. however i have this friend that claims triple A-not only paid off her car but also cut her a check to get a new one. i doubt that (being as she was at fault for the crash to begin with and was arrested for it) but yet a month later she was driving a new jeep. so i'm curious what's what.

by the way the insurance company hasn't told my mom what they are going to do just yet. but i'd like to know if anyone has had a similar incident.
Additional Details
should be noted the car was less than a month old

Sparkles

I wasn't that lucky. I was paid for how much the car was worth at the time of the accident. Even if you have a car that is only 6 months old, the car will lose value of $3000 or $4000 because it has depreciated in value. I also did not get any additonal money to buy another car, and I had to buy the car out of pocket. You be sure and find out what kind of insurance that was, because I want a policy.

Clevis D

Insurance will ONLY pay the market value of the car prior to the loss.

psychoholiday1976

Insurance will only pay cars value. As soon as you drive it off the lot it looses value tremendously. That is why GAP insurance is good when the car is purchased. The insurance will pay for the fair value and GAP will pay off the rest and in some cases give you money towards a new vehicle.

Eagleflyer

Usually they will pay what the car's value was before the accident. These numbers are usually pretty low, but the insurance company is not looking at how much is owed on the car. If my car was totaled, insurance company would cut me a check for around the Blue Book value of my car and kick in another eighty bucks or so for the "salvage value" of the car.

However, you should negotiate with the insurance company for a good settlement. You are covered for uninsured motorist (hit and run in this case), and the coverage limit for that should be a starting point for negotiation.

la428282

Why on earth would anyone think they would pay both the value of your car AND for you to get a new car. That is absolutely, positively ridiculous. Its not a freaking coupon where you get a 2 for 1 deal. Insurance gets you to PRELOSS CONDITION- giving you both the value of your car and buying you a new one would put you at 2 times your pre loss condition.

Also, they wont even necessarily pay your car off if you paid too much for it. They will only pay actual cash value of your car. If you got a really bad deal and owe more then its worth.. your out of luck and owe the excess.

The 'norm' is for them to pay you for the current Blue Book value of the car. They don't care how much you owe on it so they are not going to 'pay it off' if you are behind in your payments.

Some companies are now offering policies where they will pay for the replacement value if your care is only a year or two old but this is the exception and not the rule and they will likely charge extra for this option.

ralphers

Regardless of what is owed, they will estimate the damage, if it is over the value of the car (which they determine), they pay the estimated value, to the lien holder.

proud nerd

It depends on what kind of insurance you have. Most insurance companies pay the current value of the car. It goes to the bank first if the car isn't paid off yet. Then whatever is left over goes to the owner. If it's a really new car, your mom may get stuck with a few more payments (unless she bought gap coverage with the car), but if she's had it for a while she should AT LEAST get the loan paid off.

spiritwalker

The insurance comp will pay for the full car price, as long as it is not over the value of the car.

unoirok

if it wasn't her fault then the driver that is will be paying out her insurance company and she will get what the car is insured for. for e.g. if the car was in sured for 12k and its totalled, the insurance company should pay her out 12k. but to be smart she should use what she can to pay off the debt on the old car before getting a new one.

pbleek

The insurance company is responsible to compensate you for the value of the car you lost, if the value of the car was higher than the loan, they owe you the difference.

spool32

If its not your fault you can:

File a claim with the other persons insurance or your own. If you do it on your own, you will owe the deductible. Sometimes your insurance company will be able to recover the deductible for you from the other company when they do the subrogation.

In the case of your mom where it was a hit and run, the accident will be filed under her comprehensive coverage. Your friend is mistaken about paying the car off and getting money for a new car (specifically that). They will settle the amount that is deemed ACV or Actual Cash Value for the vehicle and write a check to your mom or if there is a loan on it, the check will go to the company that holds the loan.

Your mom is entitled to get the following from insurance:

1) Value for car
2) Coverage for medical treatments
3) Time lost from work
4) Rental car

The medical part will take the longest. They wont settle that amount until all medical treatments are complete.

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