My car was financed and the due was 15.7 k. My car insurance is telling me they they're going to pay 10k for the car and I've to pay the rest to the financing company. When I asked can the insurance of the guy that hit my car can be used, he said even if they use it they're going to pay the actual value of car and not my loan amount. Is this true? Should I settle for what my insurance company is paying or is it worth to get from other guy's insurance?
Some guy hit my parked car and now it's totaled
- Thread starter bblack4jc
- Start date
resjudicata
New member
@bblack4jc Every insurance will pay the cash value. They’ll never pay what you owe, doesn’t make sense. Cars lose value fairly quick, that’s why dealerships offer Gap insurance.
The other insurance may value your car worth more but I highly doubt that. Regardless you’re stuck with the remaining debt.
The other insurance may value your car worth more but I highly doubt that. Regardless you’re stuck with the remaining debt.
resjudicata
New member
@bblack4jc Do you have gap insurance?
If so, you’ll likely be covered for the remainder of your payments and be off the hook.
Gap covers the total cost left on the loan if a vehicle is totaled.
not insurance agent so please know that I may be wrong
If so, you’ll likely be covered for the remainder of your payments and be off the hook.
Gap covers the total cost left on the loan if a vehicle is totaled.
not insurance agent so please know that I may be wrong
@resjudicata No unfortunately I don't have the gap insurance.
ijrgerohnoxi
New member
@bblack4jc You're only due, from either company, the value of what you lost, your car. Your financial choices are never taken into consideration by any company.
@ijrgerohnoxi Is it worth checking if the other guy had gap insurance? Does his gap insurance work on my car? Sorry just checking my chances here
ijrgerohnoxi
New member
@bblack4jc His gap insurance wouldn't cover your car. The only way you're getting any more money than the value of your car is if you have gap insurance.
@ijrgerohnoxi Ok thanks for the information
mgistinger1
New member
@bblack4jc People I know have rarely settled especially with the first offer. Of course they're going to tell you that. If you don't feel comfortable negotiating, hire a public adjuster.
@mgistinger1 How much does it cost me to hire a public adjustor? If I go through the insurance of the guy who hit my car, do you think they'll cover everything ?
ijrgerohnoxi
New member
@bblack4jc Public adjusters usually take around 10% of any settlement you get. They cant make your car worth more than it is and that's all you'll get from any insurance company. They absolutely won't get you money for your remaining car loan so I don't see where you'll come out any better by hiring one. There's just nowhere to get more money.
Source: insurance agent with nearly 20 years experience in things like this rather than sleeping at a Holiday Inn last night and just guessing at what seems like how things should be.
Source: insurance agent with nearly 20 years experience in things like this rather than sleeping at a Holiday Inn last night and just guessing at what seems like how things should be.
@bblack4jc Basically the other people are right, they pay the Actual Cash Value of the car, they don’t take into account what you do or don’t have left on the loan. You’ll still owe the balance on your loan after they send your lienholder the check.
Let this be a lesson in Gap insurance and why it’s important
Source: former auto insurance adjuster
Let this be a lesson in Gap insurance and why it’s important
Source: former auto insurance adjuster
@exminhduy Is it worth checking if the other guy had gap insurance? Does his gap insurance work on my car? Sorry just checking my chances here
@bblack4jc Not at all, gap insurance is offered by your lienholder when you take out a loan. I financed my 2012 Hyundai Accent with 125k miles on it for $10k in 2015, my gap insurance is $10 extra a month and I got it because I knew I was underwater on it immediately
@exminhduy Okay thanks for the answer
@bblack4jc Sorry buddy 
I feel for ya
I feel for yachristianperson
New member
@bblack4jc Your best bet here is to let your insurance company pay what they will and sue the other person in small claims court for the balance of the loan. Had the accident not happened, you wouldn't be in this directly related financial issue...
resjudicata
New member
@christianperson He would never win this. His insurance company paid the value of the car. His taking a bad loan out is not the torts problem. Thats why GAP protection exists and why people should get it.
ijrgerohnoxi
New member
@resjudicata 100% correct answer
ijrgerohnoxi
New member
@christianperson They have no standing to sue them for the balance of the loan. They will lose in a heartbeat because that's putting them in a better financial position than before the accident.