My car is destroyed and the insurance company’s offer won’t even pay off my car loan, what am I supposed to do?
If your car’s value is less than the amount owed on the loan, and you don’t have gap insurance, it may be difficult or impossible to afford a replacement car. When you hire the Rinehardt Law Firm for your injury claim, we will develop strategies to get you into another car as soon as possible.
If you decide to try to handle this on your own, here are some suggestions for getting a replacement car:
- Try working a “collateral exchange.” Your wrecked vehicle was the collateral on the loan to the finance company. The finance company shouldn’t care whether it has your vehicle as collateral or another of equal value.
- Try buying another vehicle and financing the balance owed on your totaled vehicle into the purchase price, allowing you to pay over time, while enjoying your new vehicle. For this to work, you will have to deal with the same dealership that sold you the original vehicle.
- Did you purchase Credit Life Insurance or Credit Disability Insurance with your vehicle? If so, you are entitled to a rebate of that portion of the premium that was “unearned.”
- If have an extended warranty on your vehicle, you must contact the dealership to make sure that you are refunded the unused portion of the premium you paid for it.