Accident Update
I own a 2015 Toyota RAV4 and still owe $12,000 on it—I just purchased it last year.
On March 6th, I was involved in an accident (which wasn’t my fault), and now their insurance company is considering declaring my vehicle a total loss. My concern is, what happens if they don’t offer me enough to pay off the loan? I’m feeling really stressed about this situation.
The claim is going through Liberty Mutual. Does anyone have any advice or experience with this?
I’m really sorry to hear about your situation; that sounds incredibly stressful. If Liberty Mutual declares your RAV4 a total loss but doesn’t offer enough to cover your remaining loan balance, you may have a few options:
Negotiate with the Insurance Company: Sometimes, insurance companies may come back with a low initial offer. You can provide evidence of your car’s value, such as recent sales data for similar vehicles in your area, maintenance records, or any extra features your car had that might increase its value.
Gap Insurance: If you have gap insurance, it can help cover the difference between what the insurance company pays and what you still owe on your loan. If you don’t have it, consider it for future purchases.
Talk to Your Lender: Let your lender know what’s happening and see if there are any options they can provide, such as a temporary payment relief or restructuring your loan.
Consult with a Legal Expert: If you’re not getting a satisfactory resolution, consider consulting with a lawyer who specializes in auto accidents or insurance claims to understand your rights and options.
Emotional Support: It’s completely understandable to feel stressed in this situation. Make sure to reach out to friends or family for support.
I hope your situation gets resolved soon, and you can find a way to move forward!