Does my car insurance help me get another car if my car is totalled?
Question:
Answer:
You are only entitled to recover the Actual Cash Value of your car. Your loan is a different matter. Unless you have GAP insurance, or the value of your car exceeds the loan...no insurance company is going to 'pay off' your loan. As I said before, your loan amount has nothing to do with the value of your car and this includes your downpayment. Let's say you didn't have a loan...you paid cash for the car. You're still only owed the value of the car, not how much you paid for it.
Now, as for you needing a car to go to work...how long have you known your car is a total? Why haven't you bought a replacement vehicle as you should? No the insurance company isn't going to get you another car...that's YOUR responsibility. So start shopping NOW...you could have a new vehicle by tomorrow evening if you get on the move.
Someone mentioned something about asking for the taxes you paid on your car...sorry, but your total loss settlement already includes the taxes. You'll receive a breakdown of the settlement and you'll see it right there on the sheet of paper.sales tax.
It is my sincere hope that you purchased 'GAP' insurance along with your full coverage. Otherwise, the insurance payoff may be LESS than the amount you still owe on the car. Since you purchased your car in April, its value has depreciated, and there is a good possibility that you owe more for the car than it is actually worth. Some insurance companies will cover the 'Gap' as a perk, others require that you specify it for an extra fee.
SO, if your gap is not covered, not only has your car been totalled and thrown away, but the money from the insurance will not cover the entire loan...leaving you with a car payments, and no car.
Otherwise, no, the insurance company will not provide you with another car, they will simply cover the cost of the old one, and send you on your merry way shopping for a new vehicle, and a new loan.
It is entirely possible to get the insurance company to foot you the cost of a rental car while you go out hunting for a replacement car of your own... also, you may be entitled to a tax rebate from the insurance company totalling out your car, as the tax you paid on your old vehicle is not refundable. How would that work? When you buy a new/replacement car, the taxes paid for the old car, can be applied to the taxes of the new purchase. YOU HAVE TO ASK FOR THAT!! No insurance company likes to volunteer info about things they have to pay for.
you will get a check for your old car. you will then need to pay off as much as you can on your old car AND buy a replacement. you might end up having to refinance the whole loan. It might be cheaper to fix your car with used parts if the body shop thinks it can be properly repaired. Sadly, a person never prospers from insurance...
Hopefully, you didn't pay more for the car than it is worth, as your insurance is only going to pay fair market value, if you owe more, you are responsible for the balance of the loan. You also must get your own vehicle, your insurance has nothing to do with that.
Car insurance is a requirement for driving in the US.
If you shop around and compare quotes, you can save a TON of money.
when i got my first policy i was just so anxious that I just used whatever my parents had.
Getting quotes online is quick and easy and way better than sitting on the phone.
Getting the cheapest policy is not always the best either.
Compare the options and rates from several places.
Any way you look at it paying car insurance is not fun!
http://insurance.deal4-you.com
Good luck.
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