by Guest » Wed Nov 05, 2008 09:58 pm
I had a 2003 Land Rover Discovery II SE7 with Heated leather seats, am/fm/cd/tape, dual sunroof, towing package, 60k miles and in excellent condition. The car was totaled in the accident, and my payoff quote for the loan is $15,600. The claim adjuster said the car is worth $11,800. I live in NJ. What are my options? Can i sue the other drive for the difference between what his insurance company is willing to pay for the car, and what i owe on the loan? It just doesn't seem right to me that i would be without a car, and still have a bill for $3800. I don't see how i should have to pay for my car to be totaled simply because the price of SUV's has dropped between the time i purchased the car, and when it was totaled.
Posted: Wed Nov 05, 2008 10:51 pm Post Subject:
What is owed is the _value_ of your vehicle. I could buy that same Land Rover for $50,000 if I tried hard enough. But my decision to pay $50,000 for a $12,000 would not obligate anyone else to address my _loan_. What you paid for the vehicle and why is between you and your lien holder. That was your decision (I'm guessing you might have been upside down on a trade in or had high financing) but it's not passed on to the other party. Again, they only need to address the loss of the vehicle.
You mention that the reason for the drop in value is depressed prices and that you should not be responsible for this. Let me ask you a question... if you, as the owner and buyer are not responsible, why should anyone else be? You invested in a depreciating commodity. In that it depreciated _very_ quickly is not anyone else's problem.
Posted: Thu Nov 06, 2008 12:58 am Post Subject:
This is why gap insurance was invented. To pay the difference of what a driver owes and what the car is really worth. Just because you over payed for a car doesn't mean that driver is liable for that amount. The driver wouldn't be responsible for more than the vehicle is worth, the book value.
Posted: Thu Nov 06, 2008 07:37 am Post Subject:
Can i sue the other drive for the difference between what his insurance company is willing to pay for the car, and what i owe on the loan?
Who was responsible for the wreck? You or the other driver? If the other driver is responsible for the damages, you should turn the claim to his carrier. However, in case of totaled vehicle, the insurer will pay the actual cash value of the car and not what you owe on it, be it your insurer or the other guy's. Gap insurance on the vehicle is the only possible solution available for you.
I don't see how i should have to pay for my car to be totaled simply because the price of SUV's has dropped between the time i purchased the car, and when it was totaled.
This is just the reason why you'll not receive what you have paid for the car initially.
Posted: Thu Nov 06, 2008 12:08 pm Post Subject:
Discovery, they owe you the ACV (actual cash value) you need to get a copy of their evaluation and see how they came up with this figure, you need to make sure that they have all the payable options etc...I ran it on the system we use (nada) and came up with 12,700.00 but you need to add the following if your vehicle has these options: 3rd row seat 150.00, fixed running boards 100., Harman Kardon Stereo 350, luggage rack 75, rear air 125, rear entertainment system 450, suspension pkg 675, winch 225...I ran it for NJ for October so if your wreck happened this month it would be a little less....these values are clean retail which is what the company I work for pays....now if there is any prior UNREPAIRED damage, dents, dings, seats torn burned, needs detailed etc...that will come off the value...
I'm assuming you do not have GAP ins....another option is to get your carrier involved, have them run a value, if they come up with more then let them pay the claim under your collision coverage and they will subrogate the other carrier, course minus your deductible for now anyway...
Let us know if we can be of any other assistance or if you have any other questions.
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