Can the other party’s insurer just but or pay of my loan

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Can the other party’s insurer just but or pay of my loan

I financed a brand new car 10 months ago and recently had an accident. The other party took responsibility for it but I feel like my car has lost a ton of value. Are there any laws to have the insurance company just buy my car or pay my car loan off? Just the body estimate is $7,300 but I know there has to be so motor damage as well because my car does not run the same.

Asked on August 15, 2019 under Accident Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

The at-fault party or their insuer is never required to either buy you a new car or pay off your existing financing. Regardless of your belief that the car has lost value, they are required to only pay the lesser of 1) the cost to repair the car, or 2) the car's then-current (as of the date of the accident) fair market or "blue book" value. They pay the value of the car, which is almost always less than the amount to pay off the loan/financing due to depreciation, when it is more expensive to repair the car than it is worth (called "totalling" the car).


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