What happens when Ins. Co. totals car?

adoll12

They don't pay based on the loan you have, they don't really have anything to do with that. What they would pay you if your car was totaled is whatever the current value of the car is probably using either Kelly Blue Book or NADA values. They aren't trying to "screw" you like the other guy said, they just aren't going to pay you more than the value of your car. Although if you also got GAP insurance (this comes from the dealership - not from your insurance company) then you could use that to pay of the difference between the value of your car and what is left on your loan.

ronald h

If they total it, they pay what the car was worth prior to the accident less of course the deductible. If there is a lien against the car the draft or check will be made out to you and the lien holder who will take it and apply it to the loan balance. If that doesn't pay the loan off you will still be on the hook for the remaining amount. If you purchased the car new there is a good chance it is worth more than the damage in which case they will pay to repair less the deductible.r

ravenjudge

unless you requested-and paid for- replacement value, what is paid out is 'blue book', or, the car's resale/book value at the time of the accident. if you owe more on the loan than the car is worth-you still owe it. also, if it's totaled and drivable, you can buy it back-but you'll have a salvage title, and can't get comp/collision coverage. Gap coverage is great-if offered-but it's not retroactive.

Scott H

They pay you the value of your vehicle in the condition it was in just prior to the accident. They don't care how much you paid for it, how much you owe on it, or how much it will cost to replace it. That's not their concern.

If they pay you more than you owe on it, you'll walk away with a little money in your pocket. If you owe more than they give you, you'll have to dig into your pocket to pay off the loan.

blb

Actually, most companies use market value to determine the value of your vehicle if it is totalled. They will contact 2-3 dealerships, let them know the particulars on your vehicle to come up with a value. They will offer that amount to you. If you owe more on your vehicle than the value they can't pay any more than the value. GAP insurance can be purchased along with your car insurance. You aren't going to get screwed.

Sharp1088

The insurance company will pay you as little as possible, They will pay what the cars worth new and you will have a chance to buy the car back from them as is for considerbly cheaper. Prepare to get ripped off though because insurance compaines always try to screw you over.

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