Expert: Bennie719 - 4/4/2008

Question
My truck was recently stolen, recovered. My insurance company has totaled the vehicle. They want to pay me $22,000 but I have a loan on the truck for $33,000. I will now owe $10,000 on a truck that I no longer have.
I have heard from a former insurance underwriter that I may request that they replace my truck with one that closely matches. I would rather continue to pay off my loan and have a truck than to still owe 10k on something that I don’t have.
Can you tell me if there is any way to get them to pay off the loan or replace the truck?

Answer
Hi Sondra,
I'm sorry to learn of your misfortune.
The person that you spoke with is wrong.  An insurance company will NEVER secure a used vehicle to replace yours.  They could be held liable for mechanical problems that show up later.

Sometimes when a vehicle is very new (No more than 3-4 weeks old) and
gets totaled, there have been cases where the insurance company would allow the party to pick out a new car from the dealer and just switch the VIN numbers on the loan, but this is never done if it means buying a used car.

It sounds like the insurance company is underpaying you for the truck
or you overpaid for the truck when it was purchased.

The insurance company does owe you the true market value of your truck, perhaps you can try to work with them for a better settlement.
True market value is what trucks identical to yours (same year, make, model, equipment and mileage are selling for in your area.


If the insurance company's offer is to low and they won't bend, you need to file a complaint with the state insurance commissioner.

I hope this information has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area