Auto Insurance Claims: Rear ended....HELP!, isuzu rodeo, new car loan

Question
Mr. Hixenbaugh:
My name is Shannon Albrecht & approx. 3 weeks ago I was rear ended by a woman on my way home. We filed a Police Report & took all the necessary steps that we should have, & now, (3 weeks later!), HER insurance company is telling us that our 2000 Isuzu Rodeo is considered a "Total Loss". We still owe our Lein Holder approx. $11,200. ASSUMING that HER insurance company is obviously NOT going to give us that amount, are we "screwed" at the end of all of this? Here is what I have already looked into, & if I missed anything, PLEASE let us know:
*First, we found out that we do NOT have Gap Insurance. =(
*Second, they (HER insurance company), will be letting us know by the end of today WHAT the amount that they plan on giving us for the car.
*Our Lein holders have already told me that they do NOT settle for a smaller amount.
*I also asked them, (our Lein Holder), already if in the end of this, if, let's say, we still owed our Lein Holder $3,000ish...can we "roll it over" into a new car loan? NOPE! Can't do that either.
----Our main concern is now, after someone ELSE hit ME, I am the one getting screwed....even though SHE was fully insured AND I am FULLY incsured! Is there anything that I may be missing????? Please let me know. You may contact me at any time via email or phone: (818) 421-9077
Thank you so much for any help & your time.
Have a wonderful day!
Fondly,
Shannon Albrecht

Answer
Hi Shannon,

I have good news and I have bad news... First the good news.

Very often, insurance companies will offer less than your vehicle is actually worth. You do not have to just accept what they initially offer. Before they call you with an offer you should do some homework. Check out the following websites to get an idea of the value of your car.

1) www.nada.com
2) www.kbb.com
3) www.edmunds.com
4) www.autotrader.com

The last one will allow you to look for actual car like yours for sale in your area.  Compare all of the values you get from these sites to develope a good idea of the value of your car.  When you talk to the insurance company, have this information available and use it to make counter offers if they try to low ball you.

Now for the bad news - The insurance company is only responsible for paying you the actual cash value of your vehicle. They do not have to pay off your loan if the balance is more than the value of the car. Any remaining balance after the insurance company pays is your responsibility to pay.

I hope this helps
Richard Hixenbaugh