car total loss

2POSTS

11 years ago

i have a car loan and i got accident and insurance declare as total loss, what happen now to my car loan? and how much is the insurance pay for my car or to the car dealer.

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gian6858 Member

2POSTS

11 years ago

thanks

UmairMansoor Contributor

138POSTS

11 years ago

what happened to your car, whats the condition now?

riazcdki Serial expat

900POSTS

11 years ago

Hello Gian,

Accident causing partial or total loss is a normal and unfortunate occurrence in a leasing contract tenure. Insurance company will pay you depreciated value of the before accident but you will realize it will be a couple of thousand Riyals lower than your perceived amount.

Second shock will come when you get a call from your bank telling you that you must continue paying installments for the months the insurance company is working on its paper work. A solution to this is not to take the insurance company to court but to agree and sign on its evaluation, pay the difference and get on with your normal life. Peace of mind is lot more important than making or loosing money.

Popolocroix Serial expat

423POSTS

11 years ago

mannyd wrote:
read the insurance clause...it should say 'replacement with new vehicle'. if it's not there, then you can file a case in the government.

if its there, you can claim a new car and the company will give you new.

For Total Loss, replacement with new vehicle will probably apply only to vehicles less than a year old - which is still considered brand new....if its past one year, then, it is 2nd hand vehicle, and insurance might just pay (by cash) the insured value of your car, that is, (maybe) 15% less every year... ...so, take your car model (year)...and do the math...and consider the insurance' monkey business stuffs as well (this seems to be the trend with insurance companies now)...and if it's still under lease, then...check with the company you took the lease from...!

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skhurram007 Serial expat

410POSTS

11 years ago

One of my colleagues got his leased Corolla in accident and total loss was declared. What he told me that the insurance calculated the value with big depreciations. That money was received by leasing company who then took the remaining installments from it. In the end my colleague got very little ratio of what he already paid which was so depressing for him. So he took a personal loan from bank and bought a car.

By the way, loan from bank also has a lot lesser interest rate.