Can I negotiate a higher payout on my totaled car to cover my loan?

My car has been marked a total loss after a not-at-fault accident. I still owe $6,000 on my loan. I'm waiting for the assessed value of my vehicle, but I don't have gap insurance. Would I be able to negotiate with the other driver's insurance to pay out a higher amount to cover my gap?

“Depending on the assessed value of your vehicle, you may not need gap insurance to cover the cost of your loan. Based on the terms and conditions of your loan and the actual cash value of your vehicle, the payout may cover what you owe.
Should it not, you can always try to negotiate a different settlement amount with the other driver’s insurance company.
However, there are many factors that go into an adjuster’s decision on the actual cash value of your vehicle. You’d most likely need to provide proof as to why your vehicle is worth more than the assessed price, apart from owing more on your loan.
While this is a very unfortunate situation, if the other driver’s insurance company doesn’t agree to assess your vehicle at a higher cost, you’ll need to continue to pay your loan.
Emily Maracle
Answered on May 03, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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