Does tn require allstate insurance to pay gap insurance to the person wrecked into?

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Does tn require allstate insurance to pay gap insurance to the person wrecked into?

My wife’s vehicle was taken from the
dealership to have leather seats repaired by
Cole’s Brothers. During transportation our
vehicle was rear end collided. The allstate
insured driver was at fault texting and
driving. The at fault drivers insurance
policy is paying the worth of my wife’s
vehicle. In the state of Tn, is her gap
insurance policy supposed to pay off the
remaining 3,000 and is it state policy for
Allstate to pay sales tax on the next vehicle
I purchase within reason? Things I’ve heard,
please clear this up for me. I’ll be speaking
to Allstate soon so I’d like my ducks in a
row. Thank you for your time.

Asked on May 3, 2018 under Accident Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) Yes, your own gap coverage should pay off any remaining unpaid balance--that is, the "gap" in amounts between the fair market value of the car which you get from the other side (the at fault driver or his insurer) and the remaining balance due on your car.
2) No, the insurer does not pay the sales tax on the next vehicle you purchase. An insurer pays only the value of the car destroyed (if totalled).


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