When someone
is in an automobile accident in North Carolina or South Carolina and their vehicle is deemed a total loss,
questions arise as to what the liability insurance company has to pay. Common misconceptions are that the liability
insurance company has to find and purchase you a new car, or pay off the loan
of your totaled vehicle. Neither one of
these things are true.
The
liability insurance company has to pay the fair market value of your vehicle,
which can be simply explained as the price you could have sold the vehicle for
right before the accident happened.
Because automobile loans are typically front loaded with interest, if
your car has been recently purchased there is often a gap between the value of
the car and the amount of your car loan.
The best way to protect yourself is to purchase “GAP” coverage when you
buy your car, which will play off the difference between what the liability
insurance company pays the bank or lien holder where you financed the car and
the car loan itself.
The attorneys at Tippens& Zurosky have represented people involved in auto accidents in North
Carolina and South Carolina for nearly twenty years. Let us answer any of your questions regarding
your automobile accident. Call us toll
free at (877) 372-3580, or 704-343-0018 to schedule a consultation so that we
may assist you.
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