Car accident

[grindcorejoe]

Figured I’d ask fellow meatheads. I got rear ended today while sitting at a red traffic light. The guy who hit me was in a company truck. Now my question is if insurance declares my car totaled and I owe say 10k on my car loan and insurance says it’s only worth 8k. Will the other guy’s insurance pay the loan off or just what the car is actually worth vs what is owed on the loan?

 

[Lee_48157]

Well I’m not sure where you live but here in my state it’s “no fault insurance” meaning no matter whose fault the accident actually was, each person must claim their own vehicle. F-ing ridiculous if you ask me it’s always someone’s fault!

 

[Colette]

Are you hurt?

 

[CaptainAmerica]

Figured I’d ask fellow meatheads. I got rear ended today while sitting at a red traffic light. The guy who hit me was in a company truck. Now my question is if insurance declares my car totaled and I owe say 10k on my car loan and insurance says it’s only worth 8k. Will the other guy’s insurance pay the loan off or just what the car is actually worth vs what is owed on the loan?

Some things will depend on the state. But generally no. The insurance of either party is only required to make you whole. Whole being giving you a car that is equal to the value of your current car. Whether that means fixing or totaling will remain to be seen until the assessment. Then there’s a back and forth if you can prove it’s worth more etc.

But if the ultimate outcome is that your car is worth 8k and you owe 10k that’s not insurance’s problem that you’re upside down on your loan. Your loan and the accident are not tied together in any way.

You’d be responsible for the remaining loan balance. This is why GAP insurance exists to cover that difference of the loan vs the payout.

 

[grindcorejoe]

Ve

Some things will depend on the state. But generally no. The insurance of either party is only required to make you whole. Whole being giving you a car that is equal to the value of your current car. Whether that means fixing or totaling will remain to be seen until the assessment. Then there’s a back and forth if you can prove it’s worth more etc.

But if the ultimate outcome is that your car is worth 8k and you owe 10k that’s not insurance’s problem that you’re upside down on your loan. Your loan and the accident are not tied together in any way.

You’d be responsible for the remaining loan balance. This is why GAP insurance exists to cover that difference of the loan vs the payout.

Very well

 

[grindcorejoe]

Not particularly “hurt” , just sore.

Are you hurt?

 

[Bilge]

Figured I’d ask fellow meatheads. I got rear ended today while sitting at a red traffic light. The guy who hit me was in a company truck. Now my question is if insurance declares my car totaled and I owe say 10k on my car loan and insurance says it’s only worth 8k. Will the other guy’s insurance pay the loan off or just what the car is actually worth vs what is owed on the loan?

In my state, when you rear end someone, you’re at fault. Doesn’t matter the predicament. Either way, assuming your vehicle is totaled, you/the lender will be paid out. If the amount to be paid out is less than you believe to be fair, talk to the insurance company. I did this for a friend and was able to get her a couple grand more.
The gap between insurance pay out and what is owed, can be covered by gap insurance. Not everyone has it. I’m assuming you don’t. See what the body shop/insurance say. If it’s less than your payoff, argue with insurance to get more. Sometimes, they do