Expert: Richard Hixenbaugh - 11/15/2010

Question
QUESTION: hi a person runs a red light totals my car...I owe lets say 15,000 the insurance says its worth only 10,000 how do I make up the difference that I owe on the car???

ANSWER: Hi Mickey,

If you do not have GAP insurance, the best way to make up some of the difference is to be sure they are paying the correct amount for your car. if you do not feel they are then you should look on www.autotrader.com for cars like yours currently for sale. Find 5 to 7 then average the prices then allow some for negotiating. If the result is more then you need to negotiate with the insurance company to get more money out of them.

If the amount they are offering is fair and you don't have GAP insurance to pay the difference, then there is nothing you can do. You will have to pay the balance to the finance company.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: so I cant lets say take the other party to court of some sort and explain to the judge and when it was their fault for running the light im out 5 thousand bucks

Answer
Hi Mickey,

When your car is totaled the responsible party is responsible for paying the value of your car, not the balance of your loan. The financing of the car is a seperate contract that has nothing to do with the value of the car. IF there is a balance after the insurance company pays the value of the car, then you are responsibe for paying the balance.

I hope this helps
Richard Hixenbaugh