Car Insurance Insurance Editor Steve Glass is a retired insurance professional with over 34 years of experience in the Property & Casualty insurance industry. Over the course of his career he led teams that handled Homeowners and Commercial property and casualty claims, Auto Medical claims, Auto ...
If you owe any money on the vehicle’s financing, you will still be held responsible for paying it. You will have to pay off your auto loan out of the settlement you receive for the totaled car. If you financed a new car purchase with no down payment, you may owe more than your ca...
you will be expected to pay it off. Depending on how much you owe, the insurance payout may help to cover your debt.Gap insuranceis coverage you can get to prevent exactly these kinds of situations; if you total your car before you pay it off, gap insurance will give you the money ...
If the insurance company totals your car, itwill pay you the car's actual cash value, minus your deductible, and your car is then sent to a salvage yard to be auctioned off to the highest bidder and usually chopped up for parts. The insurance company keeps whatever money it got for the...
The auto insurance carrier steps in and pays the claim on the car, but the amount is not enough to pay off the loan. This can also lead to a balance of several thousand dollars. As an experienced bankruptcy lawyer, I understand what to do if this happens to you. Dischardign a Ca...
You can request the insurance company to do a “teardown”. This is the process where the insurance companies pay body shops to take pieces off your car, look underneath, and write an estimate on the damage that is not “visible”. ...
lease does not drop as fast as the car's value does. Typically, when a lease car is totaled, the lease payoff will be higher than the amount the insurance will pay for the car. Sometimes the difference can be thousands of dollars that you need to come up with to pay off the lease....
and any extra equipment are all important as they help increase the actual cash value. The car salvage value is commonly determined using the average of the retail and wholesale values to calculate the car’s current market value. Many insurance companies are willing to pay accidents or act of...
not obligated to pay off any loans on your car – they only cover the actual cash value of the car in the moment before the collision. If you have full or collision coverage, the insurance will reimburse that amount, first to any lien holders, then, if there's more left over, to ...
Another option if your car insurance won't pay for repairs is to keep the car and use it for spare parts. This might be worth considering if the make and model of your totaled vehicle are similar to those of another car you own. If not, you could sell off spare parts that are still...