Toss Loss on a vehicle

Submitted by Anonymous (not verified) on Mon, 11/12/2007 - 20:42

Hoping someone will be able to help me....beginning of the school year i decided to buy my newly 17 year old son a used car...i lucked out at a dealership and got a really good deal on a 2004 vw jetta gls...due to error listing on the dealerships part we got the car for 7500..it only had about 70,000 miles on it which isn't too bad...anyways.after 3 weeks of having the car, he got into an accident that was his fault and did not involve any other vehicles...

Our insurance company claimed it as a total loss due to the fact that damages to the car was about 9300 dollars. my question is will my car be valued at the price i purchased it for..or will it be values at the fair market value? even though i did only purchase it for 7500 i don't want to get into a situation where i don't get enough to cover the loan taken out..and will have to pay on a car, i no longer have.

a vw jetta that we bought is roughly selling for 11000 to 12500..

your help is greatly appreciated.

Posted: 13 Nov 2007 07:13 Post Subject: am I right ?

Well my friend, as far my understanding goes, an adjuster would describe your car as a total loss when he can explain to you that the expenses towards repairing the car would more than the present market value. The adjuster's job is to determine the amount the insurance company has to pay on the basis of the design & model of the car & its state preceding the accident. So, I feel your adjuster was right at terming it as a total loss. Am I right ? Collinj77

Posted: 13 Nov 2007 08:29 Post Subject:

well ya total loss is there when the item for which the policy is taken if reapired takes more money than the similar new article/commodity available via the market and in ur case the condition are adequately met so ur case is a case of total loss .................. i think u wont have to pay for the car..........!

Posted: 13 Nov 2007 09:49 Post Subject: consider the Gap..

Hi,

This is a very important example for the insurance consumers. One thing that I'd like to stress upon is the fact that there is something called a Gap Insurance, which is meant to serve people who are over-burdened with long-term car loans. Gap Insurance offers you a coverage for the difference between the loan & the value of the car. This can be obtained from lenders & is realizable for cases where the cars are badly damaged or totaled. Now, perhaps someone whos been into the insurance services industry would be able to tell us whether this benefit can be achieved when the insurance consumer is the party at-fault like in the above case. Thanks, Sally_field

Posted: 13 Nov 2007 12:51 Post Subject:

Good morning Shelia and welcome to the community...you did get a steal on that car! wow! I hope your boy is ok... :)

First yes, the vehicle will be valued on its ACV (actual cash value) the only time I've ever seen what a person paid for a vehicle ever come into the equation is a brand new vehicle less than 30 days off the lot, and some times then we will use the amount paid for the vehicle rather than the ACV and this I believe to be company specific. And of course doesn't relate to your loss.

The will pay/owe you (minus your deductible) the ACV not the purchase price...all companies have a set way they arrive at the ACV be it CCC, nada, edmunds etc... I ran what little info I have on your vehicle with the 75k miles and without benefit of options, and which gls etc, and got a range of 11,500-16k.

Now, perhaps someone whos been into the insurance services industry would be able to tell us whether this benefit can be achieved when the insurance consumer is the party at-fault like in the above case. Thanks, Sally_field



Sally, Gap insurance payment doesn't matter whos fault it is. It is, as you stated a coverage that pays the difference (if any) between the ACV and loan payoff.

Am I right ? Collinj77


yes, CollinJ77 you are right....

intelligentassasinator I don't know/understand what this means.

i think u wont have to pay for the car..........!



Let us know Sheila if we can be of any further assistance.

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