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

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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