Overhaulin'

what happens to total loss of a new car?

i bought my 2009 model of car only like four months. it's only 6000 km. It's colission due to weather condition. I bumped to guiderail. my insurance company is state farm. Will they pay the full amount to me? I think it's total loss because there is smoke after collsion , and fluid leaks out really? but some people they will pay the price at market value....but i onloy bought 4 months what if they only pay 70% of the car...and will the insurance price go up? it's because there is ice on ground and i hit black ice.. there is no way u can get full amount of money back? so can i aruge with them for the price they gave me? like i can say i have rust protection life time warantee...and it's awd model...etc? so if i don't get full amount, is there like i only get half of the money or60%?

Public Comments

1. Your insurance company will want an estimate on the damage done, and then will decide on whether to replace it or repair it, but either way they should pay the whole thing. You just may have to pay a small deductible
2. Your insurance company will decide if the car is repairable, or if it will be totaled. If the cost of repair exceeds 70% of it's current "market value" it will be totaled, and you will receive "market value" which will not be enough to buy another brand new car. In fact, it may not even be enough to pay off your loan, unless you bought gap insurance.
3. If State farm "totals" your car, they will pay you "fair market value" after you pay them any collision deductible you may have. You were driving the vehicle, you hit "black ice" you are responsible. Please don't be looking to get something for nothing because it "ain't gonna happen" spell check
4. Your insurance company will determine if it's in their best interest to repair the vehicle or declare it a total loss. If it's a total loss, they will give you the fair market value of the vehicle just prior to the collision. If you owe more on the car than they pay you, then your GAP insurance will pay that difference. The insurance company doesn't care how much you paid for the car or how much is owed on it.
5. The only way you can get the full purchase price back is if you had some sort of endorsement on your policy that waives depreciation in the event of a total loss. If you do not then you will only get the depreciated value minus your collision deductible. What constitute a total loss depends on what the vehicle is, but will occur when the value of the damage reached 70-95% of the vehicles value (the actual percentage depends on the salvage value of the vehicle). This accident is an at-fault collision loss, therefore your rates will go up unless you have some sort of accident forgiveness on your policy.
6. If it's a write off, you take the loss on four months payment. State Farm pays off your loan and you get some of your down payment back. Your insurance will increase, big time!