Car deemed a total loss

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Sep 16, 2019
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#1
I had been involved in a accident last month I have a 2017 Ford Mustang and I was rear ended by a pick up truck hauling a tractor. His insurance deemed my car a total loss but I don’t have enough money to purchase a new car because I will still owe on my loan. If I accept the settlement check I end up with no car and still owe $5000. Is there anything I can do why when I wasn’t at fault the truck hit me I end up with no car and no money to buy a car. It doesn’t seem fair.
 
Feb 21, 2018
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#2
Unfortunately, automobiles lose value the minute you drive them off the dealer's lot...and they depreciate VERY quickly. There are 'gap' insurance policies available that help cover that difference in the event the car is totaled, but that needs to be secured at the time of purchase or lease.

Sometimes if you can put together enough evidence that the book value of the vehicle is more than what is being offered, you can negotiate a better settlement. Since the funds are being offered up by the other guy's insurance, has your insurance company been involved to negotiate a better settlement?
 

weihlac

Verified Member
Jun 30, 2017
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#3
I had been involved in a accident last month I have a 2017 Ford Mustang and I was rear ended by a pick up truck hauling a tractor. His insurance deemed my car a total loss but I don’t have enough money to purchase a new car because I will still owe on my loan. If I accept the settlement check I end up with no car and still owe $5000. Is there anything I can do why when I wasn’t at fault the truck hit me I end up with no car and no money to buy a car. It doesn’t seem fair.
Is your insurance company working on this? You should not rely on the offer of the other party's ins co. You may also wish to look into an attorney who specializes in these types of accidents.
 
Dec 19, 2014
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#4
Are you certain you do not have gap insurance? When you took out your loan, did they mention gap insurance and did you decline it?

Sadly, this is the reality with new cars. They depreciate faster than the loan value, at least for a while. You may need an attorney.
 
Jun 12, 2019
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#5
I had been involved in a accident last month I have a 2017 Ford Mustang and I was rear ended by a pick up truck hauling a tractor. His insurance deemed my car a total loss but I don’t have enough money to purchase a new car because I will still owe on my loan. If I accept the settlement check I end up with no car and still owe $5000. Is there anything I can do why when I wasn’t at fault the truck hit me I end up with no car and no money to buy a car. It doesn’t seem fair.
Some great advice so far in regards to the total loss valuation. If you do have collision on your policy, it would not hurt to have your insurance company value your vehicle. At the minimum, you can compare the valuation as there are many methods to value a vehicle for the actual cash value. If you don't agree with your insurance's valuation, you can invoke the appraisal clause on your policy. If you have a lot of custom parts and equipment, you are usually capped at a 1,000 dollar max unless you purchased additional coverage or purchased your comp/collision at a stated value. Stated Value is you telling your insurance company on how much your vehicle is worth and providing documentation if the vehicle is totaled.

Getting an attorney which specialize in total loss valuation negotiations may not be the greatest option for a 2017 Ford Mustang. They may charge fees that would eat away at any increased value that they may be able to negotiate. There are third party valuation sites that can provide this service that would take a percentage of the increased value. This still would not be a good option as you are upside down on your loan.

Was your vehicle valued through Audatex? Audatex has some pretty shady valuation methods IMHO. I would advise that you take a look at the valuation method that they used to give you the ACV (Actual Cash Value). ACV would be the average value of the similar vehicles in your area that is for sale. They would need to get at least 2 comparable in area. A They would make an adjustment for condition, mileage and additional features of your vehicle vs the comparable. Sometimes, the insurance company would use listings from Craigslist and other dubious sources that will lower the average. Do your homework on this by looking on reputable sites such as Edmunds, Autorader or Cars.com and search for 2017 Ford Mustangs in your area that is for sale. Compile a list of the ones that are closest to your zip code and look at the ones that the insurance company used. You can ask the insurance company to add these comparable to the valuation and delete the ones that are too far away. Hopefully this would bump the average and net a higher settlement.

I hope this helps. Maybe you can upload the valuation (deleting your personal information) for review. If this is not possible, Maybe give your zip code and the proposed settlement amount. Good luck!
 
Sep 16, 2019
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#6
Thank you for the information it does help a lot. My car is actually still in the shop awaiting for the full estimate. I just want my car fixed really and not end up having no car in the end. I will upload doc shortly thanks again
 
Likes: calihankl
Jun 12, 2019
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Thank you for the information it does help a lot. My car is actually still in the shop awaiting for the full estimate. I just want my car fixed really and not end up having no car in the end. I will upload doc shortly thanks again
If you are going through the other guy's insurance, have they given you a rental vehicle?
 
Likes: VoR61

jsn55

Verified Member
Dec 26, 2014
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#12
I am very glad to read that your Mustang may be repairable, that is great. Hiring an attorney to do anything would be far too expensive I think. I was thinking about you contacting your current lender and discussing "wrapping" a loan for a new vehicle into the existing balance on the Mustang. If you have a sterling payment record, they might consider it. But repairing your little pony is definitely the very best choice. I trust that YOU were not injured which is also a blessing. Best of luck, and please let us know what transpires.
 
Likes: calihankl