How do insurance companies settle an auto claim when you owe a balance on the vehicle?

How do insurance companies settle an auto claim when you owe a balance on the vehicle?

Our auto was hit and totaled the other day.We are waiting for our insurance company to complete their adjustment work because the person that hit us had no insurance. Do insurance companies pay the blue book price or just what is owed on the auto? Will they low ball us because it is our company?


Your insurer owes you the market value or ACV (actual cash value) of the car prior to the loss. If you owe more than it's worth you will have to pay the difference to the bank.


It is a formula, age of car, condition, blue book type values, milage on the car vs your amount set for your policy.Every scratch discounts it, every mile over your amount, example you tell them you would drive 5000 a year, and the car has 20000 after 2 years, they deduct for that *I had that happen.My company, paid off my car, and gave me 1200.00. I had paid 11 payments only. It will depend on the type of car too. The cleaner it is when they inspect it, the more it helps. You can fight with your insurance comany too, yes, they will try to low ball you, but you may not have much to get out of it more than they offer. Remember any improvements, you added an alarm and have the receipts etc.


The insurance company doesn't care how much you owe on the vehicle. That's not their problem. They will pay you the actual cash value of the vehicle, which takes a number of things into account. If that's enough to pay off your loan, great. If not, you will have to pay the difference/


Neither, example: Say you owe $5,000 on your car. Insurance company will take into consideration the mileage, condition, etc.. The insurance company says your car is totaled. They may say your car was only worth $4,000. You will owe the difference, being $1,000.



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