Expert: Ron Cercone - 5/20/2009

Question
i was hit in my work parking lot and the person ran. I have gap insurance and i was told by 1 personal estimate that they will total me car the damages are more then the car is worth. Which leads to me question the money given to me by the insurance company is it mine or does the bank it the money. My problem is comming up with a down payment to purchase another car hope i hear from you soon

Answer
Hello Lori,

Sorry for the delay.

If you have "Gap" insurance, that should cover the difference in the loan amount and what the insurer pays, even if the insurer lowballs the settlement.

Aside from the Gap insurance, the insurer should name both you and the leinholder (the bank) on your car on the check. Now if you get  the car repaired for the check amount or less, before you present the check to the leinholder, then the leinholder will have no choice but to sign off on the check and return it to you. If you do this, don't sign the check before you send it to the leinholder. You may have to go to more than one body shop to try to find a cheap one if you really want your car repaired instead of "totaled out."

On the other hand, if the insurer paid less than what it costs to replace your car with one exactly like yours, then they low balled you. An nowdays, many insurers do low ball their policy holders. They probably used a CCC or ADP valuation. The best information on how to deal with a total loss valuation and other issues such as the salvage and your rights is in the eBook entitled "TOTAL LOSS AUTOMOBILE INSURANCE CLAIM ADVICE AND HELP - FOR INSUREDS" at UClaim.com http://www.uclaim.com/products.asp .