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What happens when your vehicle is declared a total loss and you owe more than what the vehicle is worth?
Wiki User
∙ 18y ago
Ok - There are a few things that may very well effect the outcome and answer to your question. I am an Insurance Adjuster in CA, NV, and CO. I am by no means an expert on the entire nation. Just a Few disclaimers 1. Every state is different - some have similar Laws, but you should also check the laws in your specific state before taking any of this as Gospel. OK! That asside, If your vehicle is deemed a total Loss and you owe a Finance company MORE than the actual cash value of the veh, FIRST! Question the Insurance agency on How they determined the Actual value. They will use one of a few services - ADP or CCC. These companys will do a Market survey and by way of personal sales and dealer quotes in your area - they will find these listings in local publications - they will determine the ACV of your vehicle. Now. YOU Should ALSO be Looking online, In local Papers - At local dealerships, Etc to find out what it will cost to replace your vehicle. If your estimate for a Vehicle with similar Mileage and Similar condition is More than the Insurance Company's - SAY SOMETHING!! it is all negotiation! Find as many Quotes as you can to support your Amount. ONCE you are satisfied that you are getting a fair cash value for your vehicle - You need to find out if you carry GAP insurance. This is coverage that you might have purchased at the time you bought your vehicle. The finance company is usually the one that sells it and it adds about 500 to the total cost of your Loan - depending on the kind of vehcile you purchase. Start by contacting your finance company - if they say that you don't have Gap insurance - Check with any other insurance policy that you may have. Now If you have exhausted all of these posibilities and you still Owe more than your vehicle is worth, Call the finance company right away. with some creative and polite and professional discussion, Most of the time - they will re-write the amount owed into a signature loan - Sometimes they will reduce the amount over all or reduce the interest rate. Other than that - there is not much you can do. Lesson to be learned - ALWAYS ALWAYS PURCHASE GAP INSURANCE!!!!!!!!!!!!! IT IS WORTH IT EVERYTIME!!!!
Wiki User
∙ 18y ago
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Who determines if a vehicle is totaled?
the insurance company- if the vehicle is damaged more then it is worth- it is considered a "total lose" you will get what the car is worth at the time of the accident-not the total value of the car-other pendings vary like full compensation insurance
What formula is used to determine if a vehicle is a total loss in Texas?
If the cost to repair is more than the vehicle is worth to replace then it is considered totaled.
What is Borderline total loss?
A total loss is when the cost of repairing the vehicle exceeds a pre-determined percentage of the vehicle's value. For example, if your vehicle is worth $10,000 and the damage exceeds $7,000, your vehicle may be considered a total loss (depending on the state and your insurance company's policy). A borderline total loss would be (in the same example) if the damage to your vehicle is close to, but not quite $7,000.
If you cannot make the payments on a vehicle which was 38000 on purchase and is now worth 28000 what happens if you take the vehicle back to the bank?
you are responsible for the whole of your loan, no matter the depreciated value of the vehicle. the amount of your loan does not change. That's it, you owe 38000
Can you tell the insurance not to write off the car to avoid taking out a new car note?
Not really. However, what you can do is ask the insurance company if they will allow you retain the vehicle after the settlement. If they allow you to do that, you can get the total loss settlement (minus the salvage value of the vehicle) and you get to keep the vehicle. It's not that simple though. First of all, if you have a lien holder, they would have to sign off on letting you do that and if you owe more than the car is worth, don't count on that happening. Secondly, do the math and figure out if keeping the vehicle is worth it. If after deducting the salvage value, you receive $5,000 and there are $4,000 worth of damages to the vehicle and the insurance company is declaring it a total loss, it might be worth it to retain the vehicle and pay to fix it. However, if the damages are over $10,000 and your settlement is going to only be $5,000, it's not worth it.
If someone totals your car and leaves the scene and is arrested for DUI is there a higher payoff for the vehicle?
No. The vehicle is worth what the vehicle is worth, no matter how it was totaled
Can you ask an insurance company to total a vehicle when they find damage of 2000 on a car worth 2500?
Yes. If you have full coverage, or the accident was not your fault.
What should you do if you have total steering failure?
Stop the vehicle as safely as possible, have it towed, get your problem diagnosed, assess whether or not it's worth the cost of repair vs. totaling your vehicle out, have it repaired if deemed feasible to do so.
What will your insurance company cover on your salvage title car if in an accident?
in most states, even if a salvaged vehicle has been repaired it is still a 'branded' title...and thus worth less.......in the states i work in a fully repaired salvaged title vehicle is worth anywhere from 30-50% less on a total loss, (reduces the actual cash value)........now, if salvaged vehicle say is worth 4k and damages are 1k, then they will repair the damaged portion......
What do you do if it costs more to fix a wrecked automobile than the vehicle is worth?
If you have physical damage coverage on your policy and the cost to repair the vehicle is more than the value of the vehicle then the insurance company will total the vehicle. In the case of a total loss, the insurance company will pay you the actual cash value of the vehicle less any deductible you have. On all insurance policies, where you have physical damage coverage, the insurance company has the option to repair the vehicle, pay the actual cash value of the vehicle, or replace the vehicle. Companies never replace the vehicle.
Is it smart to get the extended warranty on a used vehicle?
It really depends on how much you're paying for the vehicle. Factors related to price are age of the vehicle and condition of the vehicle. If the vehicle is really not worth much to begin with, the cost of an extended warranty will not be worth your while. However, if the car is worth a lot of money, and you're paying a good price for it, it would be worth it to purchase the extended warranty if it's you can get a good price on that, as well. Consider it this way: do you want to pay for an extended warranty on a vehicle that isn't worth much to replace?
What is Aamir Khan's net worth?
He has never declared his wealth on a public platform.
