How does insurance work when you total a car?

How does insurance work when you total a car?

My husband totaled our 2009 Mitsubishi Lancer today because of the ice. It'-s a $30,000 car, but we owe about $17,000 left on it. Does the insurance pay off what we owe, or do they just pay what it'-s worth? By the way, our insurance company is USAA and we have full coverage.

mbrcatz

On the standard policy, they'd pay the actual cash value, less your deductible.You can calculate that, going to www.kbb.com. Look, when I plug in a 2009 Lancer with roughly 20,000 miles, I come up with a value about mbrcatz

On the standard policy, they'd pay the actual cash value, less your deductible.You can calculate that, going to www.kbb.com. Look, when I plug in a 2009 Lancer with roughly 20,000 miles, I come up with a value about $10,000. That's a significant difference in what you owe - not unusual, in a relatively new car. But you're going to want to get your value, check the local newspapers for private party sale values, the local auto trader, etc. You don't get retail, you don't get loan payoff, unless you bought GAP coverage. "Full coverage" doesn't mean you bought GAP, so you probably want to ask USAA if you did buy GAP, which would pay off the difference.They're also going to subtract your deductible from that amount.

0,000. That's a significant difference in what you owe - not unusual, in a relatively new car. But you're going to want to get your value, check the local newspapers for private party sale values, the local auto trader, etc. You don't get retail, you don't get loan payoff, unless you bought GAP coverage. "Full coverage" doesn't mean you bought GAP, so you probably want to ask USAA if you did buy GAP, which would pay off the difference.They're also going to subtract your deductible from that amount.

Jan

Pay off what you owe. NOOOO WHY THE EVO???!!! COME ON IT'S A RALLY CAR IT SHOULD BE GOOD ON GRAVEL, SNOW AND TARMAC :'(

bobaloub

My girlfriend totaled her car and they paid here 80% of what it's worth...seems that's standard practice in the industry. As to how they determine value I don't know maybe kelly blue book.

Scott

The insurance company doesn't care how much you owe on the car, that isn't their problem. They are only obligated to pay the actual cash value of the car.

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