Insurance Only Pays Off Car Loan

My sister's car was totalled in a recent accident. She had the 2005 model car for one year. She has full coverage through her insurance company, but they only want to pay the bank off and she gets nothing. Is this right?

Answer: In most cases, the insurance company will only pay out the "book value" or depreciated value of the vehicle. If this amount is the amount of the bank loan, they could be telling your sister the truth. What you'll need to do is check the book value for that model of car and that year. Since you haven't told me the model and year, I can't comment on what the actual value of the car might be.  

Remember: in a claim situation, your insurance company is not really on your side, since you are about to cost them money. It can be well worth the effort to get someone involved that is truly acting on your behalf.

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