Should insurance pay only the amount the car is worth based on the current market value after an accident?
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3 attorney answers
You are entitled to the fair market value of the car plus 6% sales tax and tags of the car is totaled. In theory, you could take the money and purchase the exact same car, but we all know that is not how it works in the real world. Cars lose value over time so the payments you made over time are unfortunately irrelevant.
If you feel your car is worth more than they are offering, you can make a counter offer by providing comparable vehicles for sale from a website like www.cars.com.
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As Attorney Granvold identified, all insurance does is appraise the value of your car and pay it out.
If you have a finance agreement, and need coverage for the difference between the lien balance and fair market, you must purchase a "GAP" policy for covering the "gap" between the lien balance and fair market value.
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Unless you bought GAP insurance, that is all insurance is for..to cover the FMV of the vehicle. You owe the difference to the bank of remaining amount because that is the contract: to pay the the debt owed with interest until it is paid off in full no matter what. Sorry I dont have better news on that issue.
However, another issue is whether you are entitled to any monies for pain, suffering etc. from your own insurance company. NOrmally this is NO. Your policy normally does not cover..but we are not looking at your contract. To make sure, discuss with an attorney who can review your contract on that issue.