Car totaled

[kathie jensen]

Jurisdiction

Oregon

My unoccupied parked car was hit and totaled by a man who fell asleep at the wheel. It was a 2017 model I purchased new. His insurance company paid $13,000 (their fair market value). I purchased GAP insurance BUT they didn't pay the car off, leaving an $1800 balance. I now can't finance another vehicle until that loan is paid off I'm told by the dealership. I can't afford to do that. Now I'm left with nothing. Nothing to drive, no transportation to and from work etc. My daughter has to help me everyday. I had a great new car and this accident has created a living nightmare for me. Do I have any legal recourse to be compensated for the horrible situation I'm left in?

 

[army judge]

My unoccupied parked car was hit and totaled by a man who fell asleep at the wheel. It was a 2017 model I purchased new. His insurance company paid $13,000 (their fair market value). I purchased GAP insurance BUT they didn't pay the car off, leaving an $1800 balance. I now can't finance another vehicle until that loan is paid off I'm told by the dealership. I can't afford to do that. Now I'm left with nothing. Nothing to drive, no transportation to and from work etc. My daughter has to help me everyday. I had a great new car and this accident has created a living nightmare for me. Do I have any legal recourse to be compensated for the horrible situation I'm left in?

If you can prove your car was worth more than $13K, you could try to sue for the delta in small claims court. That, however, has its imperfections, too.

If your car was insured ABOVE the state minimums, you could ask your insurer if they are able to help you.

 

[mightymoose]

You could pursue the driver of the other car for the amiunt insurance did not cover... Unless you waived that option when you accepted the amount they did pay.
Why was gap refused?

 

[Highwayman]

Yes, WHY did your GAP insurance not cover this? That's why you had it.

 

[zddoodah]

His insurance company paid $13,000 (their fair market value).

I can't imagine any insurer would have paid you without you signing a full and complete release of all claims against the other driver, so I'll assume that's what happened.

I purchased GAP insurance BUT they didn't pay the car off,

Why not?

Do I have any legal recourse to be compensated for the horrible situation I'm left in?

Assuming there were no contested issues of fault, the other driver was liable to you for the fair market value of your totaled vehicle as of the time of the accident. Since you've provided no other information about the vehicle's value, you were apparently entitled to $13k, and that's what you received. That you apparently had a loan balance greater than the vehicle's value is only your concern. You were smart enough to purchase gap coverage, but you've told us that the gap coverage did not, in fact, cover the gap. Any recourse depends on why that is.