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