Total Loss - Limbo

[BlockO]

several thoughts come to mind:

• Who hits 4 parked cars without being on a psychotic rampage?
• Many delivery drivers have the wrong insurance (carrying a personal auto policy instead of commercial auto). I cringe when I read a help wanted ad for a delivery driver that says "must have proof of auto insurance" (which implies that a personal auto policy is ok). I see it quite often. Consider yourself lucky there.
• I am surprised that a commercial auto policy would only have property damage liability limits of 10K. You may want to look into what b61mack suggested.
• Also, consider yourself lucky for the fact that you were driving around without insurance, got hit by a hit and run driver.... and are still getting paid!

 

[AdvisorsIns]

If I'm not mistaking you said you owed the bank 6500 and got 7500 but claimed the car was worth 9500. The gap coverage would not do anything for you because you were not upside down in the loan.

 

[djs]

If I'm not mistaking you said you owed the bank 6500 and got 7500 but claimed the car was worth 9500. The gap coverage would not do anything for you because you were not upside down in the loan.

Good catch, I missed the part about only owing $6500. With that, the gap insurance is out of the picture.

Dan

 

[FullAuto]

If there is a lien on the car, you should have collision coverage. Why wouldn't you file against your own coverage to get the full value or your car? Then pay it off and walk off with $3k instead of the $1k you're getting now.

 

[STIBROKER]

now I have heard of a Lambo....so what is a Limbo.....

 

[blue_wynd]

If there is a lien on the car, you should have collision coverage. Why wouldn't you file against your own coverage to get the full value or your car? Then pay it off and walk off with $3k instead of the $1k you're getting now.

He said he didn't even have insurance. My guess he got the insurance and canceled it as soon as he could.

 

[whyme2013]

In this case if your car was totaled, it would come into play since the claims payout was less than your loan. I wonder if you can still get the gap coverage if you were to buy back the car vs. a normal salvage. I don't know if there is a clause in gap insurance for instances where it is deemed a total loss, but you are still driving it after buying it back and fixing it up; they don't payout. It would be great if you were to call your gap insurance company and see if the gap still apply if you buy the car back, then post here. Curious.

I will definitely keep you in the loop. Thanks for the advice.

 

[blue_wynd]

I will definitely keep you in the loop. Thanks for the advice.

For whatever reason, I thought your loan was/is 12,000 and the claims payout was less than that. If the loan was 6,500 and you got pay 7,000. Your gap insurance is not going to payout since you are not upside down. But, if you still want to ask about the above scenario, still interested.