How much should the insurance pay?

[christopherj68]

Indiana

I had a car stolen and it was totaled, the insurance isn't going to pay what is fully owned, are they required to?

They are $3,000 sort of full payment.

 

[teflon_jones]

By "owned" I assume you mean "owed" on the car loan. The insurance company is only responsible for paying FMV (fair market value) for the car. If your loan balance is $3000 more than that, and you don't have gap insurance, you're out $3000.

 

[JETX]

Yep.
The insurance company wasn't involved in your purchase, doesn't know if you made a good deal or not, your financing terms, etc., so is NOT obligated to pay off the note that you agreed to. The insurance company is only expected to pay the FMV of the vehicle at its condition (mileage, dents, etc.) IMMEDIATELY prior to the accident.

 

[christopherj68]

Thanks!

Actaully the Ins. payed full retail so that was really pretty good.

 

[christopherj68]

"IMMEDIATELY" that is funny, it took AIG 10 weeks, I had to beg and borrow transportation.