Can anyone explain to me how I should deal with my insurance company to get a new car after an accident? I just bought a 2007 Lexus is250 and it's worth 32,000. I owe 28,000 and now it's totalled, and it was my fault for making a left turn hitting thi
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PhillipLong
ANSWERS: 2
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Unless your policy includes "replacement cost" or you have some other form of rider or gap insurance to cover the difference of what you owe and what the fair market value of the car is. . .you are out of luck on getting your insurance company to foot the bill for a brand new car. Just because your source (which is unknown here) says the car is worth $32K, does not mean that is how much it is actually worth in terms of fair market value and the payout from the insurance company does not automatically cover what you owe on the car at the time it is totalled. This tends to really bite people who overfinance vehicles (not saying that is the case here, just a generalization).
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Your insurance must be full coverage if you have a lien holder. Its required by your lien that if you owe, you have collision coverage. They may still be investigating liability, you may not be fully responsible. It also depends on which state your in, because the liability loss are different. You may be able to collect a % from the adverse carrier, or you may be barred from recovery if you're over 50% at fault. regardless, if you make a left turn and are hit, they're at fault too, because they still have a duty to anticipate you making that turn and apply their breaks, swerve, honk etc. Just call your carrier to discuss your coverages, because regardless of fault, if you have collision coverage, they owe you the damages less your deductible.
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