by Guest » Sun Jan 11, 2009 02:13 pm
So in a sense the insurer is obligated to pay whatever is outstanding to the lienholder?
My situation: My car is slightly wrecked in the back end but we believe the frame has been warped and will be a writeoff. Will my insurance company payout the sum of what the car is worth from when it was bought minus depreciation? Or only what it is worth in the book minus the damages? I believe my financier requires protection from insurance companies to cover the full cost, but dont know for sure. Does anyone know if this the case?
My situation: My car is slightly wrecked in the back end but we believe the frame has been warped and will be a writeoff. Will my insurance company payout the sum of what the car is worth from when it was bought minus depreciation? Or only what it is worth in the book minus the damages? I believe my financier requires protection from insurance companies to cover the full cost, but dont know for sure. Does anyone know if this the case?
Posted: Sun Jan 11, 2009 02:12 pm Post Subject:
So in a sense the insurer is obligated to pay whatever is outstanding to the lienholder?
Absolutely NOT...the insurer is obligated to pay the Actual Cash Value (ACV) of the vehicle, minus the deductible. If there is a lein holder they must be protected...My situation: My car is slightly wrecked in the back end but we believe the frame has been warped and will be a writeoff
There is rarely a 'write off' because a frame is bent.not sure what you mean by 'warped'..most can be repaired...the only way the vehicle will be a total loss is if it costs more to repair it than the vehicles ACV less the salvage amount...or it eclipses your states percentage law, (ie most states it's 70-80% of the ACV)...Will my insurance company payout the sum of what the car is worth from when it was bought minus depreciation?
Nothing about what you paid for the vehicle comes into play...they will determine the vehicles value as it was prior to the accident....Or only what it is worth in the book minus the damages?
basically yes, some companys use NADA (none use the kelley blue book that i'm aware of)...some use computer programs and search the area for similar vehicles...If you'd like I will run a value for you if you provide the VIN, yr/make/mileage/all options, also was there any UNREPAIRED PRIOR damage to your vehicle? if so this too (a percentage generally) will be deducted from your vehicles value as well...I believe my financier requires protection from insurance companies to cover the full cost, but dont know for sure. Does anyone know if this the case?
You may be talking about GAP insurance...if you have GAP that covers the 'gap' between the vehicles value and your loan pay off. You need to find out if you have GAP and if the vehicle is totaled then you likely need to get a claim also filed with your GAP insurer (if different from your auto carrier)..Do you know yet, the estimate to repair the damage? Could be that you are jumping the gun on the total loss thing....again, I'll run a value if you want....also what state are you in? and what is the estimate of repair?
(I'm moving this to it's own thread as well)
Posted: Mon Jan 12, 2009 10:05 am Post Subject:
So in a sense the insurer is obligated to pay whatever is outstanding to the lienholder?
Well, if you still owe to the lienholder on the car the insurance company will forward the claim check to him. However, the lien holder will receive only the actual cash value of the car which can be equal or less than the amount owed by you. If the claim check carries the amount that is less than the outstanding loan amount the GAP insurance would cover the rest.
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