What Do I Do If My Car Is Totaled And You Still Owe Money

Whatsoever traffic mishap is inevitably a hassle and an aggravation, only if your personal vehicle is totaled in a Southern California traffic collision, information technology can genuinely disrupt your life, at least temporarily. It can become even worse if you lot are even so paying for the vehicle, because in that state of affairs, for many of us, the ramifications of a total loss can exist financially devastating. Permit's consider what your options and alternatives are if you lot still owe payments on a vehicle that an insurance visitor deems "totaled" after it'due south been involved in a collision.

When the estimated cost of repairing a vehicle surpasses 75 or fourscore percent of a vehicle's value, virtually insurance companies will decide that the vehicle has been totaled. Each visitor has slightly different rules and percentages, and every state of affairs will be unlike, but more often than not speaking, a total loss is declared if the repairs will exceed 80 percent of the vehicle'due south worth. For example, if a car is valued at $5000 but the repairs will exceed $4000, well-nigh insurance companies will declare the car a full loss and reimburse the owner for the full $5000 value. But if the aforementioned vehicle can exist repaired for less than $4000, then the repairs will unremarkably be authorized.

If you lot are the possessor of the totaled vehicle, that $5000 check (or whatsoever the amount is in your own case) will name you as the payee. But if you lot are nevertheless paying off a bank or a finance company for the loan that y'all purchased the vehicle with, the name of that depository financial institution or finance company volition as well be on that cheque. Insurance companies will ensure that a bank or whatsoever other lien holder is paid first when an insurance company pays for a total loss after a collision.

WHAT HAPPENS IF YOU OWE MORE ON A VEHICLE THAN ITS TOTAL VALUE?

It's a fact of life. Automobiles depreciate, and some lose their value faster than others. With that in heed, a vehicle's value is adamant by the market rather by than the amount of the loan or by whatever other guidepost. Factors such equally full mileage, the condition of the body, and the popularity of the model make up one's mind a vehicle's real worth – what you could actually expect to sell it for. In the United States, the standard resource for determining a vehicle's worth is the Kelley Blueish Book, which lists the value of most models – in a range of conditions – going back a number of years.

In the all-time-instance scenario – if there can be a "best" instance following a total loss – the corporeality yous receive from the insurance company will exceed the amount you lot still owe, and you'll exist able to put the difference toward buying some other set of wheels. But if the amount you all the same owe exceeds the corporeality you receive from the insurance company, that tin can be a worst-case scenario. You are still obliged to brand the monthly payments until the loan is satisfied. The fact that the car is totaled, or that it's worth less than you owe, does non alter the terms of the loan and makes no difference to the lender.

WHAT IS GAP INSURANCE?

"Gap" insurance (it stands for "guaranteed asset protection") is an optional insurance coverage for newer cars that tin can be added to your existing machine insurance policy. (The definition of "newer" varies among insurance companies.) If y'all have gap insurance coverage, it may pay for the difference between the balance of a loan due on the vehicle and what y'all receive from the insurance company if the vehicle is deemed a full loss after a traffic collision.

There are several steps you must accept immediately if you are involved in a traffic crash in southern California. If anyone is injured in the accident, make sure that paramedics are called to the scene. And even if you don't feel injured, accept a doctor look at you as before long equally possible after a traffic blow. Many serious personal injuries are not apparent immediately afterward a crash and may not emerge as medical problems for days or fifty-fifty weeks. Seeing a physician at once is also imperative in case you lot need to file a personal injury claim at any time after the collision.

Exchange information with the other commuter or drivers at the scene, including personal contact information, driver's license details, and insurance policy information. If you have your cell telephone, take photos of the accident scene and the vehicle damages. If the damage is anything more than than a trivial scratch or dent, try to obtain names and contact information for anyone who was a witness, and call the law. Get the names or badge numbers of the police officers and detect out how to obtain a copy of their blow report, because you may need it.

WHAT Information Will YOUR Machine INSURANCE Agent NEED?

You should contact your auto insurance agent, and if y'all've been injured, you should too adjust to speak with a Pasadena personal injury chaser. You lot can do this when you go far habitation from the blow scene or from the hospital, or fifty-fifty the next day, but do not procrastinate. Speak to your car insurance agent even if y'all believe that the other commuter was negligent and yous are filing a personal injury merits, because you may take benefits through your own car insurance that you lot may at some bespeak need. When you speak with your agent, have the following information ready:

• the names, addresses, and telephone numbers of the other drivers involved in the collision
• the insurance policy details for those drivers
• the date, time, and location of the standoff
• the proper name of the police force enforcement agency that responded

If you've been injured in a Southern California traffic collision because the other driver was negligent, y'all are entitled by law to full reimbursement for your medical treat as long as you need it, your lost wages, and all of your other injury-related expenses. Having an experienced Pasadena personal injury attorney working on your behalf is imperative if you suffer a serious injury considering some other commuter was negligent. Only if you are not injured, and if the other driver's insurance company is accepting liability, in many cases you may be able to pursue a basic accident claim without an attorney'southward assistance.

Source: https://thonbeck.com/what-to-do-if-your-car-totaled-you-owe-money/

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