QuestionQUESTION: I've bought my new car last Aug 25, 2008 an Infiniti EX 35 and I was hit by a truck last September 10, 2008 (I was able to use it for just 3weeks or less, it was not my fault) my question is, the insurance already declared my car as totaled and was saying that they gona pay me, the sticker price was 43,000 plus my 5k for tax,registration etc..so the total for the whole car was 48k..If they're going to pay me will they include my 5k and not only based it on the current value of the car? 'Cause if I want to buy the same car I'll be paying again this kind of amount as my downpayment. Can someone help me to understand this things? Thanks.
ANSWER: Hello Marlon,
The vehicle will be paid in actual cash value terms (fair market value), which will be close to what you paid, mines the original depreciation for the three weeks (can be 10% or more, depending on your state).
The fees for registration and tax should be included in any settlement, if you can show that you indeed paid them. If there is any difference between what you paid and what you receive in settlement, you have to contact your GAP insurance carrier.
For questions about this process, contact your insurance adjuster or the adjuster of the person that hit you. They have a duty to explain this process to you in your terms so you understand exactly what is going on.
You can also visit:
http://www.auto-insurance-claim-advice.com/totaling-a-vehicle.html
For more information about total loss.
Good Luck
Anne.
---------- FOLLOW-UP ----------
QUESTION: Thank you Anne for your quick response. I have a follow up question.. My insurance company sent me a letter regarding the assessment of my car that was totalled and their assessment is lower than what I expected. When I bought my car I had a lojack installed and bought a maintenance plan good for 5 years. These have been added to my car loan. My question is, should these be added to the value of my car? and should these add-ons be taken into account on the total loss computation?
Thank you in advance.
AnswerI am not sure what the "lowjack" installation entails. If they had to put equipment in it, then the equipment is covered and should be included in the total loss (if you were to get another car, you probably would have to buy this equipment again).
However, if the payment you made is for the service to only monitor that you vehicle is not stolen, then the service charged will not be owed, because you should be able to cancel it or roll it into another car.
The maintenance plan probably will not be included (or any warranties) as they can also be canceled, in a pro rate basis.
If you cannot "transfer" this contracts to a new vehicle, then you could argue against the person that hit you. This is a consequential damage and if you get another car then you are going to have to buy a new package (a damage to you).
I hope this helps,
Good Luck
Anne
