Auto insurance guru's, step in..PLEASE - Drinks on me tonight

At best you might get the cost of the car rental out of the deal by going after her. Not sure how the laws read on that.

Gary

 

Ahh, there is a misunderstanding here - it is the bank's personal property until you pay it off. You are just renting to own at this time (don't believe me? - Go look for the title, you don't have one because it is in the bank's name).

Also, cars are not investments as homes can be considered. If you take care of a home, it's value will rise, or at least not depreciate (notwithstanding those that bought shortly before the bubble - but in normal economies this generally is true). Cars, unless they live long enough to become antiques, do not rise in value - they do nothing but devalue from the second you put pen to paper. Extras you add to the car, are not worth much, if anything, to the average buyer either (ask any motorcyclist ).

 

Agreed value policies are the only policies I am aware of that will pay out a predetermined amount in the event of a loss. Those are very common with collector cars through places like Hagerty, Grundy, etc. I don't know of any company that offers that type of policy for a daily driver, and if they did, I'm sure the premiums would quickly amount to the potential policy payout in a short amount of time.

 

Commercial auto does and it's PHAT COIN.

 

How is it that you had a loan for more than the car is worth? Therein lays the trouble.....no?


"Our Insurance only covers a rental for 30 days, our insurance wont pay off our car loan,
we still owe an additional $7k on top of what the insurance company cut a check for to our
auto loan company."

 

Don't mean for that to sound calloused but I didn't know you could get loans for 180% of vehicle value.
Unless, of course, you used something else for collateral?

Am still very glad that the injuries were as not as severe as the cars damage.

 

Always remember that insurance companies are literally in the business of taking more money from you than they ever plan on giving back. That's kinda how it works.

 

yooperdave, I took your comments as trying to understand, not as judgemental.. The problem arises because the car salesman are trained to get sales they always ask what you want your payment to be not what value of vehicle is. think about it they advertise cars by payments and have pushed these out for 7 years plus.... Then because people owed more than trades were worth they came up with this great idea of "negative equity" in vehicle so you could finance your new car for more than it was worth.

Now if they do that it would be common sense for a good insurance company to have sold him gap insurance to cover difference of loan if this happened but they all want to save you 10% from other guy and that's what you end up. Nobody does their job anymore..

 

Yep...The worst thing to do is to answer the question "What do you want your payment to be"

 

Let's see if I got this straight?
You paid $17k or 20k for the car,

A couple years go by and your wife is hit by other driver,

Ins company pays you current book value of car minus your deductible,

Are you expecting the $7-10k that you've already paid into the loan?

 

I think he's upside down on the car - owes an additional 7k after the insurance company cut a ~10k check to whoever held the loan

GAP insurance would've taken care of this, but apparently wasn't on the policy.

It's understandable to feel slighted by the ins. co because of what has been invested in purchasing the car and that she wasn't at fault in totaling the vehicle.

 

LinkedXJ any chance you can find the original paperwork when the vehicle was purchased?
a lot of times the finance guys push GAP insurance amongst other devious warranty policies which could be some of the reason the vehicle is upside down 7k.

 

agreed, great thought, they might have to put it in and not even tell you.

 

Another note:
If there were any extended warranties purchased on the vehicle contact the dealership to cancel them.
They won't refund you the money directly but should cancel the remaining prorated portion of the warranty, from the debt,if one was purchased, which should lower the 7k.

Do some digging on c-list, local dealers and KBB/NADA for like kind models that are selling higher than their payout and aggregate any maintenance(new tires etc) that have been done in the past 12months present these to the adjuster. At most that could get you 5-10% above the settlement.

 

I think they make you sign a declaration to "waive it"?

 

Some good advice there basod.
People often leave the dealers lot "upside down".
I blame the banks, it used to be you had to have a down payment to get a loan...that avoids the "upside down" (normally anyways)
And this is exactly how we got into the whole mortgage debacle back in 2008 too...
Back to the topic...I agree, the insurance company is done here unless it turns out there is gap coverage. (which dealers do tend to push, one more way they make money in the F & I office)
Your only option is to get a lawyer if you think that is a wise move...and I kinda doubt it would be worth the time/trouble/money in the end.
Attending the school of hard knocks sucks most of the time...

 

I got a flyer in the mail for an 84 month loan on a new Ram pickup. I'm pretty sure it is impossible to stay rightside up on that deal.

 

I take it the drinks aren't coming for us?

Gary

 

Oh, I'm sure you can. I had to buy my 2004 Explorer XLS in November on an emergency basis (tranny died and replacement could not be found, no other vehicle, no friends/relatives in the state, live 30 miles from work and in the country, no rental car places for 20 miles etc.). So, I had to buy from a place I could walk to - a dealership 3 miles away. They wanted 8k for a 2004 with 130k miles. I got them down to 7,150 out the door (no, we didn't discuss payments, just the amount I would spend). I put 2k down and financed the rest. That thing does not blue book for more than $5,100 (most generous site price for dealer - other sites are less). Fair purchase price is $4,400. So, my loan is for basically 100% or more of the vehicle's worth.

However, I'm betting the insurance company would total it somewhere around $2k-$2.5k as they would most likely use trade in value.

 

the op thinks he is owed something that he is not......this is why insurance costs so much...."im gonna get a lawyer"
musta failed math too.