Will insurance replace the wrecked car with a new car?

Laura

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.

Stuart

If the guy who wrecked was carrying comp and collision insurance, the insurance company will indemnify him ... that is, they will restore his car to pre-wreck condition.

If the car can't be repaired, they will pay him the value of the car and take it to sell for salvage.

oklatom

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.

benrranch

The use of a vehicle during a felony act "street racing" will remove the insurance company from responsibility of the vehicle or medical problems caused from the accident.

CowboyBill

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.

~*~Malarie~*~

Does the man even have insurance on the car yet?????

nymormon

There are a lot of variables before a concrete answer can be given. One is, how much insurance did he carry. It all depends on exactly what his insurance policy states. Usually, you get the depreciated value of the car. More than likely, his insurance would pay off his loan, minus the deductible amount.

yenkoman1969

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!

MR MIYAGI

I doubt it. Most all insurance policies have a non-racing clause in them..This means the insurance company doesn't have to pay ANYTHING to the man who wrecked his car while racing...He's in deep dodo for sure !!

D.L.

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.

fisherwoman

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.

bundysmom

NO...damage due to racing is excluded. There would be no coverage.

MARK S

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.

Pedro S

no unless he paid extra for replacement ins. most people don't...they will pay out for a used low mile car...driver will get 80 to 90 %...

des

He should have had full coverage before leaving the dealership. In that case, they will pay off the new car loan only and that's in full if it is totaled beyond repair. He will then have no vehicle at all.

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