If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.
An insurance company declares a vehicle totaled when the cost to fix the vehicle exceeds 70% or more of its market value.
70% of the value
The insurance company will make you an offer.
The positive numeric value of 16000 is 16000 it self
They use a market value guide.
I totaled my Mustang and was able to buy it back from the insurance company. They gave me the Blue-Book value less my $500 deductable. They would not insure it after I repaired it, I had to switch insurance carriers to get coverage.
I think it depends on your insurance company. A friend totaled a car and they based the value of 3 or 4 values. Things like Kelly Blue Book and such.
What. Why would you think this is required? An insurance company will not find you a new vehicle is your is totaled, they will pay you the actual cash value of the vehicle you had.
If the accident was your fault you're out of luck. If you were hit by someone, their insurance will total your car and pay you for its actual cash value.
If you want to keep a totaled car, the insurance company will determine the salvage value and deduct that from your settlement check. You can still get liability insurance (if there are no safety issues related to the damage), but not collision or comprehensive unless you have the repairs made.
You need to file a claim with your auto insurance carrier. The insurance adjuster will physically examine the vehicle's damage. If the estimated cost to repair all damages exceeds the total value of the car, then the insurance company will total the car. This means they will write you (or the lender) a check for the total value of the car before damages.Most of the above is true but a car is considered totaled when the repair costs exceed 50-75% (depending on the state you live in) of its actual cash value. If it is totaled you will sign the title over to the insurance company and they will take ownership of the car after they pay you.
Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference between the market value and the loan value.