Q: My new car was totaled in an accident. How do I recoup losses against the driver that hit me?
How do I recoup the loss of what I paid on my car ($11500) vs. what my insurer gave me ($6000) vs. what it costs to replace the car (17000)? I paid a down payment of $7000 and made $4500 in car payments on my $13,500 loan. My insurer paid off the lender ($9000) and gave me a check for $6,000. I am worse off than before I bought the new car.
A: When there is a "total loss" the defendant driver cannot be held responsible for the costs associated with your loan. He or she did not negotiate the purchase price or the financing of your loan. It is fortunate you were not "upside down" on the financing, which sometimes happens. Obviously, you have made a substantial number of payments and had the use of the vehicle during that time. It is not worth the same amount now as when you originally purchased it. All you can recover is the retail value of the vehicle as of the date of loss.
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