My truck is totaled and now im screwed?

[tftinner1988]

ok so im in ohio. my truck was parked on a side street and was hit from behind. cops were called and filled a police report. he adminted fault and i found out he has 2 dui's. the cops did not breathalize him even tho he hit a parked vehivle and his girlfriend was following him(very suspicious to me) . so i owe about 6k on the loan and i DO have gap insurance. i was told by his insurance company i will get paid for the fair market value on the truck (about 10,000) im still waiting for the final number tomorrow. so am i going to be left with just 4k? this seems insane to me i was not even driving the vehicle and now im out of a truck which i need for work. in my opion the insurance company should be responsible for give me the fair market price and pay the loan (so they would owe me 16k). am i crazy or am i just going to have to bite the bullet because some dumbass smashed into my parked vehicle?

[disneysteve]

Sorry to hear about the accident.

Why would the insurance company give you $6,000 more than your car is worth? That's not how insurance works. You are insuring the value which is what they will pay you.

Right now you have 6K in debt and 4K in equity. After they pay, you will have zero debt and 4K cash. You won't be any worse off than you are now financially speaking. You can go out and buy another truck for 10K with a 6K loan and you'll be right back where you started.

[tftinner1988]

so now i am going to have to finance another vehicle because someone hit me?

i get what your saying. can i legally go after his insurance? i mean now i am the one who is put out by this situation. this just does not seem fair. my car was parked and was not on the road assuming the risk factor of being in an accident which i would be able to completely understand.

[james.hendrickson]

Sorry to hear about the accident.

Why would the insurance company give you $6,000 more than your car is worth? That's not how insurance works. You are insuring the value which is what they will pay you.

Right now you have 6K in debt and 4K in equity. After they pay, you will have zero debt and 4K cash. You won't be any worse off than you are now financially speaking. You can go out and buy another truck for 10K with a 6K loan and you'll be right back where you started.

You might be able to get an even better truck with the 4K cash if you shop hard. A couple of friends of ours picked up a 2004 GMC Envoy at an estate sale for about 50% of the retail value. They paid $2,600 for a vehicle worth $5,300.

[tftinner1988]

You might be able to get an even better truck with the 4K cash if you shop hard. A couple of friends of ours picked up a 2004 GMC Envoy at an estate sale for about 50% of the retail value. They paid $2,600 for a vehicle worth $5,300.

ya i have already found some vehicles but i will not be able to get the same truck in that condition. is was in perfect shape other then needing new rockers which i planed on fixing once the weather breaks.

[james.hendrickson]

So...I don't know your situation. Whats your thinking regarding getting the more expensive type of truck?

[tftinner1988]

So...I don't know your situation. Whats your thinking regarding getting the more expensive type of truck?

i just don't understand why i have to downgrade my vehicle. i have a truck for a reason (work). i think they should be responsible for replacing my truck with one of the same value. i don't want a brand new one, i just don't get how im the one being screwed and having to take out another loan. i work hard to make that payment and now im completely screwed?

[disneysteve]

so now i am going to have to finance another vehicle because someone hit me?

You were already financing a vehicle. What's the difference?

can i legally go after his insurance?

Go after it for what? They are paying you what your vehicle is worth. That's exactly what they're supposed to do.

i just don't understand why i have to downgrade my vehicle.

Why do you have to downgrade? You can replace it with something comparable, better, or worse. That's entirely up to you. The insurance only covers something comparable.

[corn18]

1. Buy a $10,000 truck
2. Put $4,000 down
3. Finance $6,000

You're in the exact same spot you were 30 seconds before the guy hit your truck.

[Like2Plan]

Sorry you are in this situation. I know exactly what you are saying. We experienced a loss on a older model vehicle last summer. Finding a vehicle that was exactly like ours (or even similar) was not possible. We discovered some of the features we had on our old van were no longer offered on the new vans. (It took us several months to decide on a replacement).

One thing you can do—is search ads for trucks similar to yours. You can use this as a negotiation tool if they cost more than what the insurance company is offering for settlement.

[disneysteve]

Also make sure the offer accurately reflects the condition and options your truck had. When our van got wrecked the first offer was missing several things and I was able to get the settlement raised by a couple thousand dollars.

[snafu]

Welcome to SA. We all have different backgrounds and experiences but we sure care about getting value for money. I'm glad you weren't injured when your truck was hit. It's a relief to hear insurance is willing to pay 'fair market value.' Insurance doesn't give a thought to your personal, financial condition. They only look at the vehicle, usually low balling the offer and demand the vehicle's owner prove the condition warrants replacement value with photos and a paper trail of maintenance history. Take photos of each feature your truck provided, down to condition of the tires.

Do you get a temporary rental vehicle, as part of insurance settlement so that you have 'wheels' to get you to work?

Depending on the terms of your current truck loan, you may find the balance less than anticipated since paying it off early reduces interest charged. Having a major amount of cash and financing arranged in advance can put you in a strong bargaining position if buying a replacement privately. Sales staff know you will buy not just 'kick tires,' so you should be able to bargain hard. They need commissions your money provides!

I suggest spending a few minutes in your library, looking at the back [repair] section of Truck version, Lemon Aid, to see weak points, repair schedule, of truck brand, model you desire. Ask seller for maintenance records, what things have been done already!

Good luck, really great insurance is co operating

[Fishindude77]

I'm sure you could purchase insurance somewhere that would replace your truck with something better or even a brand new one, but you aren't going to like the cost of that insurance coverage.

Run the Kelly Blue Book numbers on your truck including all options, mileage, etc. to make sure they pay you what it is worth. Once you cash that check all negotiations are over.

Your situation is not unique. Most anyone that has been driving for a few decades has encountered something like this. This is another reason to have an emergency fund.