Comments on: My car was totaled and I owe 8500, insurance will pay 8500 BUT……..?

By: sickofInsurance

sickofInsurance — Fri, 23 Jul 2010 21:43:01 +0000

Oh you have no idea what a big scam this is. Lovely how we end up with the debt, they end up selling our cars, and we have been paying them for nothing. My car had a little crunch in front fender. I waited 8 weeks for it to be repaired, each week being told it was almost done. The insurance company sent me 1400 to cover repair. It got deposited into my account. Another 2 weeks went by and finally I called and said…Where is my car? I was then told, oh it is totaled! Excuse me??? It had a crunched bumper, brand new tires, brand new belts, and only 37,000 miles. I go up to see my car, find out what is going on and maybe get my new tires. The car is GONE. POOF. No where to be seen. Repair place won’t tell me where it is. I call the Insurance company and they say it was totaled, and had 87,000 (WTF?) miles on it…blah blah. I say…where is it. No answer. I keep demanding to know where my car is. They then do not pay off the credit company who then sues me. Insurance company wants the 1400 back from me because I turned them into the Insurance Commission, and I say…where is my car. For two years they refuse to tell me, I then find out my perfectly running vehicle was sold at a car dealer across the state and actually talk to the man who bought it and said ya…this is what they always do. We do the body work then sell the car to someone else. So…someone pocketed this money! Now, I am out a car, out the money, and still had to pay for the car! Insurance company goes behind my back, sues me for 1400 plus costs equaling over 5000…gets a judgment because I do not know they sued. Whala! Everyone gets rich except…me…the consumer. My credit is shot, and now, 8 years later, they come back again wanting more money…after statute is expired. And…the court lets them file even when they are no longer allowed to! Yay! so…basically…watch out. You are going to get screwed no matter what because the Courts HELP them do it!

By: Essex Dan

Essex Dan — Mon, 01 Mar 2010 12:27:59 +0000

Jeff,

If you have agreed on the value of the vehicle with the appraiser then that’s problem #1 solved.

Ignore the advice from others about GAP coverage. If the insurance company is willing to pay the payoff amount then there is no gap and this is irrelevant. Gap coverage won’t cover a gap caused by the owner keeping the salvage. There is no gap.

Depending on what state you’re in you also might have sales tax to consider. In most cases you’ll find the insurance company has to pay sales tax on the car they are buying from you but if you keep the salvage they may not. This could be a significant sum. Clarify if the $8500 includes sales tax or not and what their obligations are in respect to that if you keep the salvage.

Also clarify who’s paying any towing / storage / body shop tear-down charges that may exist on the vehicle.

Most likely the loan agreement will determine what happens. It certainly has a clause addressing what happens in the event of a loss to the vehicle. Find it and read it.

Also, carefully consider whether keeping the salvage is a good idea. If it’s just hail damage or something like that where not much needs fixing then it might be okay to keep. Just remember that many states don’t want rebuilt cars on the road and intentionally make it hassle to re-title or re-register the car. Your car is likely to be subjected to a complete inspection that will include all sorts of things that had nothing to do with the damages but are part of the overall inspection process, ie. ball joints, brake pads, lights opposite the end that was damaged. It’s often more hassle than it’s worth. Most people regret doing it.

By: Age of Reason

Age of Reason — Mon, 01 Mar 2010 12:27:59 +0000

You either borrow the 1200 or you out of luck. The insurance company will not be stalled and the lender wants full payment. That 8500 check will be made out to you and the lender.

By: MSAD

MSAD — Mon, 01 Mar 2010 12:27:59 +0000

The adjuster is NOT required to pay off your balance. The amount of your note has Nothing to do with the value of the car.

You can stall all you want….but you won’t get any more money.

When an insurance company totals a car they buy it from you. They then sell the car at a salvage auction to recover some of the money back.

When you keep the salvage – the insurance company determines the value of the car. They then subtract the amount they think they could have gotten at the salvage auction. You get the car and the difference.

You will need to contact your finance company about the difference. Only they can tell you what they are willing to do.

As far as the offer on the car goes – the insurance company owes the Actual Cash Value of the vehicle. That means – what the car could have sold for given its age, condition, options, mileage. When you keep the salvage: AVC – salvage value – deductible (if applicable) = amount you get.

By: mbrcatz

mbrcatz — Mon, 01 Mar 2010 12:27:59 +0000

You’ll have to contact the credit union and ask them if they’ll give you a personal laon for that amount, or borrow it from someone else.

You can also ask the adjuster if they’d go down to $750 for the salvage value – it’s negotiable, you know.

No, the adjuster doesn’t have to pay off the balance, unless you have "gap" coverage – he only has to pay "actual cash value" less your deductible. You should probably go to http://www.kbb.com, and find the private party sale value in your area, and see if he’s lowballing you – and talk to your agent, see if your agent can get the payout increased a bit, and the salvage value decreased a bit.