Auto and Car Insurance

Auto Insurance?

Hi!I need an advice. I bought a new car last nov w/ a 3000 down. After 7 days, my sis &I got into an accident.Our insurance is 100/300/100 &I was under my dads insurance.I paid the deductible and the premium balance for 6mos. The car was declared total wreck. Now,mydad is asking me for 2400 for the difference. Is there such thing as difference? He's telling me that I need to pay this amount to the insurance. People keeps telling me that there's something fishy. Im not the policy holder so, when I called the insurance they're not entertaining my questions even though I'm the one who's paying them and involved in the accident. Are they really like that? The only thing that i asked them if I owe the insurance a certain amount (the difference), they told me that I dont need to pay anything anymore. Instead I'm gonna get a claim but my dad didn’t mention it to me. The difference that hes is talking about is CAR'sORIGINAL VALUE - DEPRECIATED/ ACTUAL/ PRESENT VALUE OF THE CAR AFTER 7DAYS.

Public Comments

1. It sounds to me like this is the balance due on the car loan. It has nothing to do with the insurance company. They only pay the actual cash value of the vehicle at the time of the loss, less the deductible. Your father may also be asking for the deductible from you (included in the $2400). The car will depreciate a few thousand dollars the minute you drive off of the lot. The $3000 down you paid included taxes, fees, registration fees, etc so MOST of it didn't go to pay towards the value of the car. Look at the loan papers, the amount of the original loan is probably very close to the sticker price of the car. The payoff on the loan includes interest & there may be a minimum interest charge on the loan, even if the loan was only for a week because of the processing fees, etc. What your father should have done was purchase GAP insurance on the auto policy & this would have paid off the loan (there still would have been the deductible for you or your father to pay). This is for when the payoff on the loan is more than the actual cash value of the vehicle. There is nothing fishy here.