My car is totaled and it is on loan.?

Question

I have an Volvo S40 2000 model car. My car is totaled in an accident which I was not at Fault. I still owe on the loan. My insurance company said that they will estimate the current market value of the car. Can anyone tell me, what value the insurance comapny will be giving to me, is it the Retail value or Trade-in-value. If it is the retail value, I should be Ok on the loan but if it is the Trade-in-value, I will end up paying the remaining of the loan out from my pocket as the Trade-in-value is less than what I owe to the bank.

Answer 1

Since it is not your fault sue the other party.  Walk around with a neck brace for the next 8 months.  You may need that money to cover the difference.  Im pretty sure you get retail value

Answer 2

In the future, you should get what is called gap insurance. It's pretty common for leased cars, but you can get it for financed cars as well. It covers any difference in the value of the car and the loan payoff amount. It's really cheap to get as well. Your insurance agent would have been more helpful if they had suggested it.

Answer 3

First, they will offer just under market value. Say NO. Then get a NADA appraisal on line and print it. Also go to Auto Trader on line and find several cars just like yours. Newspaper too. Show the claims adjuster what it takes to replace your car. Most reputable Ins. companies will come up with the replacement value.

They are supposed to give you retail replacement value.

Answer 4

Depending on your insurance company, most should give you the replacement value.  If you have a large national company, it should fall somewhere in between retail and trade in.  Basically your insurance company goes after the guy that hit you and his company, and that is where the money comes from.  If they are the same insurance company, you might get hosed.  If his company is basic cut rate insurance, you WILL get hosed.