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What happens if your car is totaled and you owe more than your insurance settlement?
Wiki User
∙ 14y ago
If you purchased GAP insurance it will pay the difference between what the insurer pays and the amount left on the loan.
If not you need to determine how the insurer came up with the amount they say your car is worth. If they used a company called CCC you have a chance to get more money buy questioning how CCC came up with the value. Somewhere on the net is 20 questions you can send to the insurance company about how they detirmined the value of your car if they used CCC that they can't awnser and helps you get a more fair evaluation of your cars worth.
Wiki User
∙ 14y ago
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What happens if the damage is more than the insurance limit?
the automobile is totaled which means the insurance co. will pay you the low blue book value of the car rather than paying to have it fixed.
Why would an insurance company declare a vehicle totaled?
An insurance company declares a vehicle totaled when the cost to fix the vehicle exceeds 70% or more of its market value.
What makes a motorcycled totaled?
When a vehicle covered by insurance gets wrecked, the insurance company looks at how much it will cost to repair. If repairing the bike costs more than it is worth, then the insurance company declares it totaled and pays for a replacement.
If you believe the settlement offered for a car that was totaled is too low can it be questioned?
most insurance companies have a procedure to arbitrate when there is a dispute about the value of your property.Most insurance co try to pay the least.If you can prove that your property is worth more than challenge the insurance co. You may have to bring in a licensed independent appraiser on your side to fight.
Does classic car insurance cost more than normal?
Classic car insurance costs more than regular car insurance. This is because it costs more to replace the parts on an antique car, and would be a lot more to replace if totaled.
What are the advantages of a life insurance settlement?
The main advantage of a life insurance settlement is that instead of a life insurance "surrender", (which sometimes happens if the owner can no longer afford the premiums),the owner of the policy can sell the policy to a third party and in turn receive "some" money from it. The person selling will definitely get less than the policy is worth, but more than if they completely gave it up.
If your car is totaled do you still have to pay off the insurance policy?
No, simply because there is nothing to be insured any more, your car is gone.
What are the tax consequences of a life insurance settlement?
You may have to pay capital gains taxes on a life insurance settlement in addition to any income taxes you might owe. Consult with a CPA or tax attorney to learn more about what tax consequences that a life insurance settlement may have.
What happens when a vehicle is totaled and you owe a finance company more than what the insurance company offers?
Auto dealers would normally offer you a Guaranteed Asset Protection plan attached to your amount of the auto. This GAP is technically insurance of your asset, the car for payment of the remaining amount owed the finance company after the regular insurance pays their amount.
Do you have to get the car fixed after receiving the insurance check?
If the car was not classified "totaled" (meaning that the damage is more than the value of the vehicle) it is the right thing to do.
Where can one find more information on insurance settlements?
Insurance settlement information can be found within insurance companies policies. Insurance Companies will have all information about their insurance in a brochure or online.
What are some important factors to considered when accepting an insurance settlement?
Before you accept an insurance settlement consider the long term risks. Will you need more money down the road or in the future and is this settlement enough to cover an unexpected expense that may arise.
