Im guessing its totalled?

I typed a much longer response but decided I’d keep most of my opinion to myself. However, some of the mods need to get thicker skin.

 

Glad you are ok along with the fact that nobody was injured is surely a blessing. I’ve pushed my limits driving tired in the past and was lucky to never have anything like this happen to me.

that being said I would think it’s totaled looking at the extent of damage done and the airbags deploying. Considering it’s a very new truck, it will be based on what the insurance values the truck vs repair cost. I hit a tire someone lost on the freeway once and it was 1/3 of the cost or replacing the truck so they fixed it. I was told by my insurance company at the time (Safeco) it would require 70% of the replacement cost to be considered totaled. I think each company/policy will be different.

If they do total it, you may be able to buy the vehicle back and use/part out the truck and make some money off of it.

once again glad everyone was physically OK and this can be a valuable learning experience!

 

But gap assumes a vehicle loses value when you drive it off the lot. That is not what is happening today.

The value increases not decreases.

 

And gap isn't an insurance you just "get." It's an add on. And if you get said add on in a market like this then yeah it's a waste of money.

 

That's if you buy a vehicle that increases in value. Why would anyone do that?

I doubt if any insurance company is going to pay more than what you paid for a vehicle that is a total loss due to an accident. No matter what the book value say it's worth. I don't think they would pay for any market adjustment on top of MSRP either.

Unlike an automotive retailer, the insurer isn't interested in what a vehicle is worth unless it cost them less money. There is no benefit for the insurer if a vehicle does not depreciate in value.

If people are paying more than what a vehicle is worth at the time they make the purchase. The insurer is going to charge more to insure that vehicle.

The only party that benefits from a vehicle appreciating in value, is the party that sells the vehicle.

 

I don't know a single insurer that won't pay "fair market value" for your vehicle. If they don't, it's a shitty insurer.

And yes, an increase in premium for something that is more expensive is pretty self explanatory.

 

Bummer
Been there man

 

Is fairmarket, ever going to be above MSRP of the vehicle?

I think there would be a cap as to how much a vehicle still in production would appreciate in value.

I can't recall ever totaling a vehicle, I don't know what to really expect in this situation. I know the insurer wants to pay the least amount as possible.

Someone in this situation would probably be the only wat to gauge what happens, or someone in the insurance industry.

 

Yes they will pay above MSRP, if the market trends lead that way. My insurance company has no file that indicates what I paid for my truck. They have market data. They insure, charge, and pay out based on market data and a ton of other variables (safety features, location primarily parked, etc). They don't care if you paid 1k or 100k for it. Source: two uncles in the insurance industry.

I should add that Tax/Fees don't add value to a vehicle. I paid 37k OTD for my truck but the "price" was 32k. My truck is now worth around 35k (give or take) and insurance WILL pay that out, if (God forbid) I were to total my truck.

 

I think about those aspects as well. I also find stuff like this really just too bad when older 1st gens can go decades without any substantial impacts or damage. And then other end of the spectrum - OP didn't even make his first payment before this. Bummer doesn't quite cut it.

 

Have you seen ANYONE selling a “used” Corvette C8 in the past three years at or below MSRP?

Nope. Fair market value is MSRP + 10, 20 or 30k.

The same is now happening on Tacomas with low mileage. Heck, it’s happening on a lot of other high demand vehicles.

I was just wondering how settlements are paid on a new total loss vehicle. I think I know now. Thanks.

 

If they couldn't fix it, they'd probably tell you some BS and give you 32k.

 

Sorry to hear that. Glad no one was hurt. I don't believe you will find a used one cheaper than a new at this point unless you want the first year 3rd gens came out. Think that year is considered a skip year by most people. You might could buy it back and title it as a salvage title if you really wanted it but seriously think about it before you do that. Could turn ugly trying to fix it.

 

The downside to this is that he may have a waiver of depreciation endorsement on his insurance policy as he bought the truck new. If so the insurer is only obligated to pay him what is on the bill of sale and nothing more. This was a huge benefit a few years ago but could now be a bad thing given the current market. I paid $45k CAD for my truck June 2020. They are now averaging $55k CAD for landed units due to mark up. I purchased an additional endorsement for guaranteed replacement cost which gives me a brand new vehicle regardless of the additional cost. It comes at a higher premium but could be extremely beneficial.

 

Yep, welcome to TW