vehicled totaled
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Freshman User
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vehicled totaled
can someone please give me some info. my mom is worried to death. her vehicle was hit and insurance looked at it today and said it's "totaled". she's worried cause she bought it from a dealership and still owes a lot of money.does anyone know what happens in a situation like this.does the dealership pick it up and she owes nothing more or does insurance just pay her what the value of the vehicle is or whatever. she gets it fixed and we go on as usual or what?
Senior User
Joined: Jan 2006
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From: Mobile, Alabama
The Insurance Company is responsible to pay the actual value of the vehicle. They are somewhat flexible but they usually go by all the books ie: NADA, Kelly and others. Is there a chance that your Mother has "Gap Insurance" as it will pay any difference between the amount the Insurance Company pays and the balance on the loan. Otherwise, she will be responsible for any amount owed to pay off the loan.
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Freshman User
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so, she still owes like $5,000 and vehicle is only worth like $2,000. it's gonna costs 2 to fix it.the insurance guy looked at it and said our insurance company will most likely pay around $1,800 since thats all it's worth.so, is the insurance gonna just pay to have it fixed and we get it fixed and she just continues to pay the vehicle off as usual?
Senior User
Joined: Jan 2006
Posts: 566
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From: Mobile, Alabama
Unfortunately, I don't think you have a lot of choices here in that regardless of the circumstances your Mother is obligated to the Lienholder for the $5000. I imagine the Insurance Company will protect the Lienholder by making the check payable to them and you. I would contact the Lienholder and explain the situation and hopefully they will allow you to have the vehicle repaired and continue to drive it and pay the loan off accordingly. You can rest assured that they would rather have you do that than for you to default on the loan and they get stuck for the $3200 deficency. This is a very unfortunate situation and believe me you are not alone as many vehicles get totaled and leave their owners facing a loan payoff that is much greater than the Insurance settlement. I really hope it works out for your Mother.
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Joined: Aug 2005
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From: S.W. Florida
Another option is to ask for "Fair market value" where the insurance adjuster checks with local dealers to see what they are selling for.
When they do this, you can (sometimes) get the lein holder to do a change of collateral. You get the insurance company to purchase the replacement vehicle for you, and the bank just changes the vin number on the loan.
I've seen some banks that refuse to do this, even at the risk of defaulting on the remainder of the loan. (Cut their nose off to spite their face).
Good luck.
When they do this, you can (sometimes) get the lein holder to do a change of collateral. You get the insurance company to purchase the replacement vehicle for you, and the bank just changes the vin number on the loan.
I've seen some banks that refuse to do this, even at the risk of defaulting on the remainder of the loan. (Cut their nose off to spite their face).
Good luck.
Junior User
Joined: Jul 2009
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From: Phoenix, AZ
my 1986 chevrolet was totalled out after being rear-ended. bent the frame and put a crease across the floorboard. i paid 3,000 for the truck, but the insurance company gave me 5,100 because they thought the engine was brand new, lol. That motor had over 200,000 miles on it. I had just steam cleaned the engine compartment and put a can of engine brite on it just before it got wrecked. best $4 i ever spent.
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Cargo Master
Joined: Mar 2007
Posts: 2,935
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From: Arcadia, Fla
Insurance companies WILL LOWBALL pay outs each and every time! You have to fight them and be hard about it. My wife got rearended in my 85 Plymouth in january. Only thing wrong with it was the bumper! But due to the age of vehicle the insurance jerks wanted to total it out BS on that! FFW to last month I got a frantic call from the insurance jerks wanting to check the car out. I told them the reason I never brough the car to them is because they will total it due to age. Well after some heated words I got more than enough $$$ to fix it and it was not totaled.
Each case I had to deal with this(3 times for 2 vehicles), I sat on taking any offers or talk to them for 3 to 5 months. I get what I want! The longer the claim is on their books more likely you will get more $$$ and your way. Now my vehicles are fully paid off, with loans and ect, I don't know about that but I think the tactic probly will work. Just keep paying on the loan or get a lawyer is probly best.
Each case I had to deal with this(3 times for 2 vehicles), I sat on taking any offers or talk to them for 3 to 5 months. I get what I want! The longer the claim is on their books more likely you will get more $$$ and your way. Now my vehicles are fully paid off, with loans and ect, I don't know about that but I think the tactic probly will work. Just keep paying on the loan or get a lawyer is probly best.
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Cargo Master
Joined: Mar 2007
Posts: 2,935
Likes: 34
From: Arcadia, Fla
my 1986 chevrolet was totalled out after being rear-ended. bent the frame and put a crease across the floorboard. i paid 3,000 for the truck, but the insurance company gave me 5,100 because they thought the engine was brand new, lol. That motor had over 200,000 miles on it. I had just steam cleaned the engine compartment and put a can of engine brite on it just before it got wrecked. best $4 i ever spent.
I love hearing that!!! Its good to nail insurance companies. I had a 90 Plymouth voyager that was totaled. I got it for $60(needed the rubber band and head gaskit) as that all I had on me at that time and the guy just wanted it gone! 2 years later it was totaled out and like my other post I sat and waited. I got $2100 for it!
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