Auto insurance claims?

Question

Auto insurance claims?Total my 06 tundra. I owe the finance co. 26,000.insurance co ofers 22,000 am i screwed? I got gap insurance. another offer was to to let me keep my truck and get 16,000 from the insurance co. I am financed thru toyota and my interest is 21%. my truck is a total loss. I am pretty confused about the hole thing. I purchased the truck in 2006 for 30,000. payed more than 15,000. on it already. and my pay off was still high. i had no credit and i needed to build some, so i got the truck. any advise on dealing for a better settlement? or is the offers they told me about fair? any advise? thanx.

Answer 1

First I'd like to know what state your in.......the price of trucks and the larges SUV's have gone down almost 17% in Calif. in the last 6 months due to gas prices.  This is probably why your getting such a low offer.

Second, honestly....if your loan is at 21%, I say take the money and run.  There are a lot better percentage rates out there to choose from....21% is outrageous!! You now have some credit & should be able to get a better contract.

Third, wise choice in getting GAP Insurance.  This will pay off the rest of the loan you have except for late payments & fees.

Answer 2

If their offer is low compared to what your truck is worth on the market, you can negotiate of have a lawyer do it for you.  You pay insurance for a reason so there is no way they should be s******g you.  On the other hand if because of the loan terms, you owe way more than what they are going for  then you may be batter off getting it fixed and trying to refinance fro a better loan.

Answer 3

If you have gap insurance, the gap insurance is supposed to cover the difference between insurance pay out and pay off figure. That's why you have gap insurance.

Answer 4

$22,000 is fair for a $30,000 truck 2 years after purchase, your gap coverage covers the remaining $4,000 so your loan is paid off.  Depreciation is highest the first 2 years, and so is the interest portion of your payment.  You will end up owing zero.  Next vehicle, if it is new, or almost new, ask your insurance agent or broker about the availability of purchase price protection.  We had that on my wife's car for 2 years, and a write-off in that time would have generated insurance payment of the whole purchase price, taxes, etc.  Not all companies offer it, but, if it is available, is better than gap insurance.  Where marketed, it is only available from auto insurance companies.

Answer 5

Due to gas prices now.....the value of trucks have tanked.

You can't hardly give a truck away now.

With a 21% interest rate - the truck depreciates faster than you can pay down the note.

Ask the insurance company how they got their figure....but odds are -it's pretty accurate and maybe even a little generous (given what gas prices have done to the value of trucks).