my car was hit from behind and was totaled. but the person who hit me has a low policy and only paying out $12,525 y does my insurnace compay get it?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 1, 2012

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Insurance Question from Honolulu, HI

Asked on 03/01/2012

my car was hit from behind and was totaled. but the person who hit me has a low policy and only paying out $12,525 y does my insurnace compay get it? my insurance company paid the other half of my car which was $15,000. my insurance said they i would only be getting back my $500 deductable back. why cant my insurance keep my $500 deductable and i get the $12,525? I would help cover the 3 years of car payments that i made to my old car. why should i have to start at ground zero with the used car i replaced the new car i bought?

Answer given on March 03, 2012

If your car was totaled by a driver who did not have enough insurance to pay for the actual cash value of the car, then your insurance company should be paying for the full cash value of your car. They would then go after the other insurance company for whatever amount they can collect. If they are successful, then you get your deductible returned by your insurance company. The other insurance company is reimbursing your insurance company the most it will pay, not paying an additional amount of money for your car.It sounds like you may not understand what your car is worth. Even if you owe more than you were paid, it does not mean you were underpaid. Insurance companies pay what the “blue book” value of your car is at the time of loss. Many times this is not the same as what you may owe. If you don’t have “gap” insurance, then you will not have enough money to pay off your loan.

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