Do you own a newer car? Did you finance it? Industry publications are reporting that a lot of newer cars, because of all the safety features, are more likely to be declared a total loss because of the expense of replacing all that safety equipment.
It is great news that cars are getting safer and safer, but one thing that often troubles us when a person has suffered personal injuries from a car crash is that while they may be physically hurt due to the fault of another party, their car needs to be replaced and they are “upside down” on their financing.
An insurance company only has to pay the fair market value of the vehicle- which means that they only have to pay what it costs to get that same vehicle replaced.
As many people know, your car depreciates the most in the first years of ownership, so if you get into a crash when your car is depreciating the most and it is declared a total loss, you may end up owing money for a car you can no longer drive.
When you buy a car and you are financing a lot of the purchase, think about getting Guaranteed Auto Protection (GAP) insurance coverage from your own automobile insurance company or from the dealership.
If you are hurt in a crash and you are dealing with the physical and economic pains, give FL Legal Group a call at 800-984-9951 or take a few minutes to fill our contact form.
Our attorneys are ready to answer your questions and help you navigate through the recovery process.
Useful link: Totaled CarsAuthor: Marc Semago