Is this how insurance companies work?
My daughter had her unattended legally parked coup¨¦ hit and totaled out by a drunk driver with no insurance in a stolen sports car. The owner of the car had no insurance and both of these race are in jail according to the police report. My daughter have full coverage insurance which paid off her coup¨¦. She now does not have a saloon. The insurance company told her it is up to her to buy another car. She has solitary had this car a few months and remunerated 2,000.00 down out of her income tax money. She now have to come up with another $2,000.00 for a down payment for another coup¨¦. Is this the way it works with insurance companies. It seem she is being punished for a drunk drivers actions. She have a car and now she does not own a car and none of this is her fault.
Answers:
Depends on what state you're in, seem crappy though
unfortunately yes thats how it works. The insurance company will not money the insured if the car has a lein out on it. They will discharge the leinholder. If they give more than the loan then she would capture the overage. As far as her down payment thats how it works, if she were to deal in the car she would have to settle off her loan first as well. If the other creature had insurance then she still wouldnt bring back any money from that either, they too would pay the leinholder. Sorry, I know it sucks but thats the road it goes. Source(s): Farmers Insurance CSR
Yes this is how insurance works. The insurance company owes your daughter for the Actual Cash Value (ACV) of the coup¨¦. The ACV value has nought to do with the down payment already spent or the certainty that a new down payment will be needed for the replacement coup¨¦.
Thousands of people are in this situation respectively month and while it might seem fair this is the agency it works. People have tried suing the at-fault person for the down reimbursement money but the court denies their lawsuit because decades ago the courts (not insurance companies) decided that all that be owed was the ACV of the damaged property.
Even if the at-fault entity had insurance they too would only owe the ACV. Your daughter have no legal standing to seek any down pay money for the replacement car. Even though the at-fault party here be uninsured they too do not legally owe her for a new down giving.
Your daughter isn't being punished. She was only unlucky enough to get hit by a POS drunk driver. I would suggest that your daughter make sure that her insurance company sues the drunk driver to get reimbursement on the claim. If they do this she MIGHT get her deductible pay for some day. Source(s): Owner of a subrogation recovery company representing insurance companies against uninsured citizens who cause damages .
the insurance pays off book effectiveness of the car unfortunately the cars other go down in merit and your daughter owns a car that is worth smaller quantity than she paid for it
OK, if the owner DID enjoy insurance, they still wouldn't be liable, because the car was stolen.
Yes, this is how it works. Even if the driver wasn't drunk - even if at hand WAS insurance, they never pay more than actual cash appeal of the car.
Your daugher is being punished for borrowing money on a depreciating asset - the coup¨¦. If she bought a $2K junker, and it was totalled, she'd get $2K. Which she could use for another $2K junker.
You can't punish the at guiltiness driver, by making them pay for depreciation of the vehicle and high interest rates, or your daughter getting "taken" at the dealer's. Likely that $2K she rewarded on the car, mostly went to sale tax, tags, title, etc. She's lucky she get payoff. Source(s): agent, 21+ years
her only hope is to go through the papers (auto ads) and collaborate to auto dealers and get something within writing regarding the value of her sports car. Kelley Blue Book kbb.com is good and you want to check it to sell, not to trade. hit the insurance company beside proof that the car was worth more than they are paying her.
The reality that she bought it with her tax repayment works in your favor because that makes it extremely new. was near an independent repair shop that determined her car was totaled? If so, a statement from them as to the pro of the car prior to impact would be good. A Company inundated beside paper will sometimes fold just to shut you up.... lol
Let me guess.... Allstate??
If the car be new, it became used & depreciated the second she drove stale the lot. Insurance is only obligated to pay the actual lolly value of the car which is its plus at the time of the claim, not its value a couple months ago when she bought it. When she drove off the lot she without beating about the bush lost a couple thousand dollars due to depreciation. This how both insurance and car ownership work!
Related Questions:
Answers:
Depends on what state you're in, seem crappy though
unfortunately yes thats how it works. The insurance company will not money the insured if the car has a lein out on it. They will discharge the leinholder. If they give more than the loan then she would capture the overage. As far as her down payment thats how it works, if she were to deal in the car she would have to settle off her loan first as well. If the other creature had insurance then she still wouldnt bring back any money from that either, they too would pay the leinholder. Sorry, I know it sucks but thats the road it goes. Source(s): Farmers Insurance CSR
Yes this is how insurance works. The insurance company owes your daughter for the Actual Cash Value (ACV) of the coup¨¦. The ACV value has nought to do with the down payment already spent or the certainty that a new down payment will be needed for the replacement coup¨¦.
Thousands of people are in this situation respectively month and while it might seem fair this is the agency it works. People have tried suing the at-fault person for the down reimbursement money but the court denies their lawsuit because decades ago the courts (not insurance companies) decided that all that be owed was the ACV of the damaged property.
Even if the at-fault entity had insurance they too would only owe the ACV. Your daughter have no legal standing to seek any down pay money for the replacement car. Even though the at-fault party here be uninsured they too do not legally owe her for a new down giving.
Your daughter isn't being punished. She was only unlucky enough to get hit by a POS drunk driver. I would suggest that your daughter make sure that her insurance company sues the drunk driver to get reimbursement on the claim. If they do this she MIGHT get her deductible pay for some day. Source(s): Owner of a subrogation recovery company representing insurance companies against uninsured citizens who cause damages .
the insurance pays off book effectiveness of the car unfortunately the cars other go down in merit and your daughter owns a car that is worth smaller quantity than she paid for it
OK, if the owner DID enjoy insurance, they still wouldn't be liable, because the car was stolen.
Yes, this is how it works. Even if the driver wasn't drunk - even if at hand WAS insurance, they never pay more than actual cash appeal of the car.
Your daugher is being punished for borrowing money on a depreciating asset - the coup¨¦. If she bought a $2K junker, and it was totalled, she'd get $2K. Which she could use for another $2K junker.
You can't punish the at guiltiness driver, by making them pay for depreciation of the vehicle and high interest rates, or your daughter getting "taken" at the dealer's. Likely that $2K she rewarded on the car, mostly went to sale tax, tags, title, etc. She's lucky she get payoff. Source(s): agent, 21+ years
her only hope is to go through the papers (auto ads) and collaborate to auto dealers and get something within writing regarding the value of her sports car. Kelley Blue Book kbb.com is good and you want to check it to sell, not to trade. hit the insurance company beside proof that the car was worth more than they are paying her.
The reality that she bought it with her tax repayment works in your favor because that makes it extremely new. was near an independent repair shop that determined her car was totaled? If so, a statement from them as to the pro of the car prior to impact would be good. A Company inundated beside paper will sometimes fold just to shut you up.... lol
Let me guess.... Allstate??
If the car be new, it became used & depreciated the second she drove stale the lot. Insurance is only obligated to pay the actual lolly value of the car which is its plus at the time of the claim, not its value a couple months ago when she bought it. When she drove off the lot she without beating about the bush lost a couple thousand dollars due to depreciation. This how both insurance and car ownership work!
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