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Not at fault, but they won't pay cost of my car?

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M

mrc1615

Guest
I was driving along, minding my own busness when this guy drove out of a parking lot and slammed into the side of my car. The police were contacted, and the guy was issued a citation for the accident. I've almost totally been dealing with the guys insurance company, and they have said that the car has been totaled. They have offered to pay 9500 plus the state tax as fair market value for my car. That is about 900 dollars less then what I owe on the loan, I'm currently out of work and now out a car. What do i need to do from here, I've contacted my insurance company to see if there is anything they can do about it. But things are not looking hopeful. I thought that the insurance was made to put people back to where they were before the accident happened. Even if he does pay off my car, I'm still without a car now. If this is desided, and agreed upon, then wouldn't the insurance company need the loan paied off as soon as possable? I don't have the money to pay it. What will they do to me if i can't pay it?

Thank you in advance for any assistance you can offer. I'm sorry if these issues have been covered in other posts, its late at night and I'm really tired lol.

Curtis.
 


M

mrc1615

Guest
Sorry,

I forgot to note my state, its Nebraska.

Curtis
 
T

TimC

Guest
The amount the insurance company pays has nothing to do with what you owe on the car. It has to do with the VALUE of the car.

The fact that you owe more than the car is worth is none of the insurance company's concern. This is one of the dangers of financing a high percentage of a car's value when you buy it. This is also a good lesson for purchasing "stated value" coverage as opposed to "book value" coverage. Although in the case of the other company paying the claim I am not sure how that would affect things. Stated Value coverage may not be available in all states, either.

The fact that you are, in all likelihood, unable to finance another car due to your out-of-work condition is none of their concern either.
 
C

cdcard

Guest
Dear mc1615:
I agree with TimC; the other insurance company is going to pay a blue-book range amount for the car, regardless of your debt. The duty of that insurance company is to pay you the VALUE of your car, which has nothing to do with the DEBT on your car; two separate issues. YOu can try negotiating with the other insurance company for a higher amount than what they've offered, but unless there was something unusually valuable about your specific car, you may not get what you're hoping for. The holder of the note on your car can come after you for what's owed on the car. So you may want to make some arrangements with them to pay off the extra $900 that the insurance won't cover. Come back to this bulletin board or our chat line if you have more questions as you work your way through the system. Best of luck to you.
 

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