Is it common for car insurance company not to reimburse the down payment of a vehicle after an accident?
Thursday, August 26th, 2010 at
5:54 pm
I was in an accident where I was not at fault. My car was totaled and the insurance company said that they would pay the bank loan balance for the car, but refuses to reimburse me the down payment which is 00. Is that common?
Tagged with: bank loan • Insurance • Insurance Company • loan balance
Filed under: Car Insurance
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Yes, most of the time the down payment will not be reimbursed. The insurance will only cover the remaining balance only and therefore, the down payment is like payments you already did towards the car so you just lost 4000.00 and your car. That is sad to say but that’s the truth. Take it from someone with former experience.
Insurance pays you the value of the vehicle at the time of the crash. Does not matter what you paid for it, you get what it is worth.
Consider yourself lucky. You could have only put $1000 down and then you would owe the bank $3000 after insurance pays.
Yes. You’re not going to get what you paid for the car, you’re going to get actual cash value minus depreciation for wear and tear, mileage, mechanical issues, etc. You should be lucky the insurance company is paying off the bank loan. The $4,000 down payment doesn’t even go towards the financing of the vehicle anyway. How do you think dealerships make their money?
yes they pay off the loan. if the car is worth more than the note they will send you a check for the difference. they are not going to give you purchase price of the vehicle.
the insurance policy is supposed to reimburse for the value stated, if it is that sort of policy, but NOT what YOU have already paid; that’s water under the bridge! It is not meant to enrich you, only to put you where you were just prior to the accident-so it may pay off the car, and if the amount owed is less than the current value you may even get a little back-but you don’t get a free gift of the money paid in, sorry.