My car insurance is trying to rip me off?

So I got into an accident before thanksgiving. A man did a 360 on the highway after losing control of his car. He then hit me, and now my 2009 Honda Civic is totaled. He's clearly at fault. Problem is my insurance is trying to pay only $11000 (this includes sales tax) to my 12K car loan. Leaving me with nothing. What can I do now?

Insurance is not ripping you off. They can only pay fair market value of your vehicle, in other words, if not for this accident, how much could you sell your car for. They do not own the loan value of your vehicle.

It can work both ways. If your loan was $5,000 and they offer you $11,000, the value of your vehicle, then you would have $6,000 in your pocket to use as a down payment for another newer car, or pay cash for an older car.

The good news is that you have GAP, so the only out of pocket you will have will be your deductible, which YOUR insurance will get from the other driver and/or his insurance to pay you back.

If, not for the GAP, then you would be out of pocket your deductible, plus the balance owing on your loan.

No they aren't. Unless you opted for GAP insurance at the beginning of your loan, they did what they said they would do, took care of your actual loss. You had a vehicle worth $11,000 and a $12,000 loan. If you had GAP it would pay the difference between fair market value and your total loan. It isn't the fault of the insurance you were upside down on your loan by a grand.

Nothing. If you did not opt for GAP coverage, this is how insurance works. They give you the value of the vehicle at the time of loss. You have the right to sue him for the rest, and if you win, he will be responsible for the extra 1k. The loan is paid off, and you start over.

They only have to pay the current value of the car. Not the amount of your loan.

Fire them.

Your insurance is nothing to do with the loan you have. The fact that your car is now worth less than the outstanding loan isn't their concern.
They're not ripping you off.

The loan balance isn't part of the vehicle's value, and you're only entitled to claim compensation for the vehicle's value. You can't sue the other guy for the remaining balance on your loan, because he didn't cause you to pay interest on the vehicle. If you don't have GAP coverage, you can't claim the remaining balance on the loan.

You still have options, though. The first option is the easiest. Ask the lender for another loan, basically a refinance, and roll the previous balance into the new total loan amount. Most lenders are more than happy to do that.

The second option gets tricky, and it's a gamble. If you truly think the insurance company is paying less than the vehicle is worth, you can dispute the value with them. Don't waste your time with kbb.com values and a bunch of asking prices for vehicles similar to yours, because that really is a waste of your time. What you need is a professional appraisal, done on a (warning, legal term ahead) without prejudice basis, and show that to the insurer. Only a professional appraisal (which you'll have to pay for) will sway them, anything less is completely useless. That's how they arrived at their value for your car, and that's what you'll need to dispute them.

It's a gamble because if the appraisal you get done says your vehicle is only worth $11 grand, you just wasted a few hundred bucks on the appraiser's fees.

When You bought the car you paid more than what the car is worth they only pay what it is worth you can aways sue the other car owner in small claims court for the differance

Take the bus or buy a bike…

YES. I do have GAP insurance.

An attorney may be able to improve the payment. However, the basis of the problem is what is known as "the gap." When we buy a car it costs us more than the car itself is worth - tax, license, fees to make it pretty, cost of coffee in the lounge, etc. Then when we take possession it is already bought and is now one owner older, both of which reduce the value… And that value is all the insurance will pay. When buying a car we're offered "gap insurance" to cover the difference.

All any insurance company owes you is the fair market value of your vehicle. This has nothing to do with how much you owe on the car or how much it will cost you to buy another car. It's nobody's fault but yours that you owe more than the car is worth.

Your claim is for the market value of the car. Do you own research and come up with your own values. Go to www.kbb.com and input all of your info on your vehicle. Go to www.cars.com and look for a car similar to yours and see what is the asking price.

You can sue the person who hit you. Your insurance is paying you the market value of your car. That was the deal.

Hi Not a thing this is the issue with old cars when they are not worth the price you paid for it.

Take the other driver to small claims court and see if you can get the difference from him.

YES. I do have GAP insurance.