Non-fault Accident?

Question

My girlfriend was recently involved in an accident when a semi drove her off the road on the freeway and her vehicle was nearly totaled when it went across the median and onto oncoming traffic. Obviously, the accident was not her fault and when the police arrived, they confirmed that by citing the driver of the semi.

The vehicle in question is a 2005 Volvo S40, worth approximately $14,500 at the time. Unfortunately for us, we still owe about $17,000 on this vehicle. Who is expected to cover the $2,500 difference? I understand that gap coverage is something you usually purchase for yourself, as an option, but if it's somebody else's fault, why should I be stuck with no car and a bill for $2,500?? What chance do I have of his insurance company paying the full amount owed on the vehicle? If they don't, can I come after the driver in civil court?

None of this was my fault, so why should we bear ANY of the costs?

Answer 1

You state the car was "Nearly totaled." If the car was nearly totaled then it will be repaired and the gap between the loan and the Actual Cash Value (ACV) doesn't even come into play.

If the car was in fact totaled, the semi's insurance does not owe you for any issues that you may have with your loan payoff vs. the (ACV) of your car. The law states they owe for the ACV of the totaled car and rental car. They do not owe for loan gaps and neither does the driver of the semi. They would owe the value of the property (car) and not the value of the loan.

Even though the accident wasn't your fault you bear the "costs" of having a loan that is more than the value of your car. The other insurance company and the semi driver don't owe this because you did not have gap insurance or for whatever reason owe more than the car is worth.

You could try suing the driver, but your odds of winning are slim. I have not seen anybody win one of these in the Midwestern states I've handled.

Good Luck

Answer 2

Have to agree with Oklatom.  In this day & age, gap insurance is a must.  Although the other insurance company is liable for 'general damages' otherwise known as pain/suffering.  This is normally compensation for your girlfriends disruption of her daily life, yet if you get enough, it may cover the difference.  Good Luck!

Answer 3

You are entitled to be made whole, not to make a profit.  If your vehicle is worth $14,500 that is what you will get.  It is not the fault of insurance that you paid too much for your car.

You also had the opportunity to get a GAP policy that would pay the difference between the worth of the vehicle and what you owed in the case of a total loss.  Obviously you said "No" to that coverage, effectively saying "I don't think I'll have total loss, and if I do, I'll cover it."

Actually it is your fault for not being fully covered.  Sorry.