Expert: Charlie Barone - 11/25/2009

Question
Hi Charlie
My car is a total loss I have a 08 Hyundai Sonata,34,000 miles on it what might the insurance do next. what happens after the car is paid off. I can take some of the money from personal injury claim and get another vehicle right. Can I claim additional money for loss of use or anything like that.

Answer
Mike,

Depending on whose fault the accident was determined to be, you are owed replacement transportation until the claim settles (in lieu of loss of use). If the accident was not your fault (as I gather from the fact you mention a personal injury claim) you are due for the cost of a rental until you have the settlement money in your hand. The insurance company will take the car and request that you sign and give them the title. If the car is financed, then you will sign a paper giving your rights to the car and the insurer will pay them the actual cash value.

Their offer will be based on a book value approved by your state insurance regulator, or a system that finds actual cars to replace your Sonata and bases their offer on them. If you owe more on the car than its value as of the date of accident, any GAP insurance you may have bought at the time of the car's purchase will cover that indebtedness.

Charlie