Auto Insurance Claims: Total loss claim, mileage discrepancy, blowing smoke

Question
I had a comprehensive claim with my auto insurance. After weeks of waiting for a decision because there was a mileage discrepancy, they call me and say they can only give me what I paid for the vehicle, not the actual value. They said that NYS only allows the insurance to pay what was paid for the car if it was purchased from a licensed dealer within 6 months. What I paid doesn't cover my loan( because of interest) or money down for a new vehicle. But the actual value will cover everything. What do I do.

Answer
Hi Cashonna,

An insurance companmy does not owe the balance of your loan. They do owe for the value of your car on the day it was totaled.

I have never heard of this law you or they are speaking of. If they are quoting law as the basis of their settlement, then demand that they provide you with a copy of the law. It they do and it is the law there is nothing you can do. The law is the law. But if they cant or won't provide you with a copy of the law or the statute number so you can look it up yourself then thay are likely just blowing smoke. If there is no law that says what they are saying then they own you the proce that a vehicle like yours would sell for on the date of the accident, plus the sales tax.

I hope this helps
Richard Hixenbaugh