Will the insurance company pay me the value of my loan because the car was totaled?

I was rear-ended and pushed into another car which ultimately totaled my car. The guy who hit me, his insurance company decided to total my car because the damages were more than the car was worth. But what I want to know is are they just going to give me market value for my car or will they give me enough to cover my loan, which is more than the market value? If not is there anything I can do short of taking this guy to court, to cover the remaining value of the loan?
Will the insurance company pay me the value of my loan because the car was totaled?
that all depends on if your insurance policy is for market value or an agreed value. unfortunatly if its insured for market value you will only get what its market value is
Will the insurance company pay me the value of my loan because the car was totaled?
you have to have something called gap insurance, that is usually available through the place you financed through...
Reply:You will only get the marked value(ACV). Even if you sue the other party, his insurance company will be defending him. It is very unlikely you will be awarded the difference between the ACV and the pay off. It is not the other party%26#039;s fault that you either paid too much for the vehicle, or have a very high interest rate.
Reply:Sorry, but any loan balance is your responsibility. The other driver and/or their insurance company only you the Actual Cash Value (ACV) of the damaged property (car). Any issues with a loan balance is your problem.





You can try suing the other driver but I haven%26#039;t seen anybody win one of these I owe more than the car is worth lawsuits yet.


I have seen people go to court and plead with the judge/commissioner that if the other car hadn%26#039;t hit them they wouldn%26#039;t have a situation where they owe more than the car is worth. Which is just not true until the day the loan is paid off.








The other driver is not liable for the fact that you owe more than the car is worth regardless of the reason.
Reply:What your looking for is GAP coverage. It covers the %26quot;gap%26quot; between what the car is worth and what you owe. Many dealerships sell this when you buy a car from them. Check your paper work. If you do not have GAP coverage, then you will only get the Actual Cash Value of the car. As for taking it to court, you%26#039;ll have to consult a lawyer.





Edit:


I agree that it seems unfair. Some companies, like Allstate, have just started offering %26quot;new car replacement%26quot; this would cover things like your situation, giving you check for the amount a brand new model costs. I feel that this should have been done a long time ago and hope more companies will start offering similar coverage options.
Reply:nope that%26#039;s why they offer %26quot;GAP COVERAGE%26quot; as well. when u buy insurance they ask you if you would like to elect this coverage in case of a total loss and if you did elect this coverage your insurance should be able to pay off your difference from the market value of the car to the loan amount payoff. when we bought our car we were also asked if we would like to purchase GAP COVERAGE as well and knowing how people drive now a days i didn%26#039;t want to risk buying a brand new car and getting into an accident a day later only to find out the market value of the car dropped significantly leaving us with 7 thousand to pay off. it has happened one too many times to people i know so we did spend the extra 500 or so for gap coverage JUST IN CASE. gotta think ahead in times like this so yea pretty much you should have educated yourself a little bit more about what type of coverage to purchase as well as what you could afford in case of an accident. it was definiately the other person%26#039;s fault but it doesn%26#039;t mean that they%26#039;d have to pay off your loan. if you buy a brand new car today at 24 thou and the moment you drive it off the lot... no matter what the price drops a lot... like our car... 7 grand. even if we wanted to take it back that very same day we bought it we would walk into any dealership and they%26#039;d only offer us up to 18 grand or if lucky 19. but yup... reality of the car world... get used to it and educate yourself a little more about it. sorry... it%26#039;s just life gotta live and learn.
Reply:No- they will only pay ACV. No amount of whining, lawyers, etc will change this.





Let me explain why..





lets say you owe 10k on a car worth 5k. You are 5k upside down.





Now- they pay you 5k... and you go get another car of the same value with that 5k.





You are still 5k upside down- therefore they put you in preloss condition. If they paid off the whole loan you would no longer be upside and they would be making you in BETTER condition then prior to the loss- how is that fair?





Sorry buddy- looks like your going to be upside down in your next loan just like you should be. accidents dont benefit you.





and no silly of course you cant get gap AFTER! If we could all get insurance AFTER accidents that we needed wed all walk around uninsured! Take this as an expensive financial lesson.





Remember- you are not in worse shape. Simply get a new car that cost what they paid off.. and youll still just be upside down by the same amount. how is that complicated to figure out?
Reply:If you have Gap coverage, it will cover your loan, if not, you will be responsible for the balance owed. No, you cannot get Gap coverage after the fact. You could take the guy to court, but they probably won%26#039;t award you the difference, that is a decision you made, to pay more than the value of the car. The civil court matter would be more for if you lost work due to injury, or had ongoing medical problems, not because you paid more than you should have.