Car accident/insurance question!?
Thursday, September 2nd, 2010 at
6:36 am
Is there some sort of law that claims if your car is in an accident the dealership will pay for the rest of the remaining balance on your car? That way the insurance company gives you the money to buy a new one. My friend was telling me something about this but I don’t really remember what it was called, or even if that was what she was trying to explain.
Thank you!
Tagged with: insurance • insurance company • money • there some sort
Filed under: Personal Injury Claims Lawyer
Like this post? Subscribe to my RSS feed and get loads more!
Nope, there’s no law that says the dealership has to pay off your car.
Insurance only pays what your car is WORTH. There is a coverage, called GAP coverage, that pays the difference between what your car is worth, and the balance on your loan. You can buy it on your car insurance policy, or from a dealer – I’d recommend buying it from your car insurance, because you’ll get paid MONTHS faster.
Also, GAP doesn’t cover negative equity rolled into the loan, taxes or registration fees, late fees, forced placement coverage, OR your deductible, so you STILL have to pay your deductible, and maybe the other fees.
Ask your agent, if you can add it to your auto policy.
if its a total loss the ins co pays the leinholder/ if there is a balance on the plus side contact lienholder/ usually the car depreciates as much as the payments that are made however it pays to ask. find out how much is owed and what the car is worth/and sometimes they will roll the note over and your good to go
Nope…………you would have to have bought what is called GAP insurance and that way what the insurance does not cover the GAP will…