Xeon

Folks,

Quick question here.

If my car was totalled while parking on the street (imagine some truck crashing into it !). How will my insurance company settle this issue?

Also, how long will that take

My assumption is that they will

1) spend a wk or 2 estimating the cost of the car
2) getting another brand new coupe for me

3) Is it possible for me to reject their offer of the new coupe, and instead offer to fork out slightly more money for another car?

Lynn

They will not give you a new car. They will give you a check for what they believe is the current value of your car.

MacPhisto

You need to read your policy - it depends on the insurance company and the terms of your policy.

For instance, 21st Century insurance policies provide that if your car is totalled during the first year of ownership, they will replace the car with a new one (the same model).

Typically, however, you just get a check for what they believe the car is worth. You can do whatever you want with it. Of course, it won't be nearly enough to buy the same car again, because of the depreciation (steep during the first year) and the tax, license and registration you will have to pay on the new car.

Lynn

What happened to your car, Xeon?

MacPhisto

Let me guess, I have ESP. It was totalled by a truck while it was parked on the street.

mleskovar

Most insurance companies will only offer you "what it's worth" and you do not have to accept it. Usually you cannot replace your car with what they offer. I have argued with them and won. The down side is it takes longer to get your money. They all use evaluators to place a price on your car. Do your own research in the paper and on the web to get real world prices and fight them with the data.

mctwin2kman

Well if you had GAP insurance as well your insurance company will give you a check and the bank will eat the rest of the loan. The problem is if you put a lot down and the insurance company gives you enough you can pay the car off but you will lose the money you put down. Since it would never be enough to pay the loan plus make your moeny back from the deposit. I would fight until you can make a good compromise.

Xeon

thanks god......my car is still sitting safely in my garage....but my fren's c32 is not.........well..it is sitting...in a junkyard

taylor192

1. Most likely, some are quicker than others.
2. Only if your policy has that in it. Usually most insurance companies add this protection for new cars so they are covered in the first year, if not, you can ask your insurance company to add it, and if they can't, I'd recommend switching insurance companies at least for the first year, cause this is when the biggest hit will happen if you write off the car.
*** Most people think this is GAP, but its above and beyond that, ask your broker. ***
3. Yes but its lengthy and not fun, and might not be worth your trouble in the end.

My question is now then:

1. I am leasing and my car will be worth $20K (CND) to buy out at the end.
2. The Blue Book value may actually be higher than this figure.
3. If I write it off, will the insurance company actually pay me more than what I currently owe? Or do they pay the leasing company and I get screwed either way?