You don’t own your automobile outright if you have a car loan or financing arrangement. Following an accident in a financed vehicle, your insurance company will determine how much to pay you depending on the vehicle’s damage and the amount you owe on your loan or agreement. A Colorado car accident lawyer can guide you about what to expect if you crash your financed vehicle. But in this blog, too, you will get to know about the necessary steps that you should take.
Inform your insurance company
If you have a financed automobile and are involved in a car accident, you must decide on appropriate insurance coverage. You can opt for sr22 insurance georgia. Depending on your insurance policy, insurance coverage may pay damages if you are at fault for the accident. However, if another driver is at fault, their insurance company may be responsible.
Claim compensation from your culprit
As said earlier, you would have to get your compensation from your culprit’s insurance company if you are not at fault. Here this may take a while to settle down as your culprit might not take the blame, or his insurance company will ask for many proofs. However, ultimately, with a lawyer’s help, you would be able to get compensation from him.
Meanwhile, get GAP insurance.
The loan you have to pay back is often more than the car’s actual price, which is considered a loss. In this case, your insurance company pays only for the car’s actual price, and the remaining amount has to be paid by you. Here is where GAP insurance then comes into action.
GAP insurance can help cover the gap between the vehicle’s value and the loan or agreement’s outstanding balance. GAP insurance comes in handy when you still owe a substantial amount on a financed automobile.
Hire a lawyer
A car accident lawyer knows the ins and outs of the car accident business, and it is better you seek legal counsel instead of making a mess by handling this alone. To get a good settlement from your case, contact a lawyer—preferably one near you and who has experience in solving similar cases as yours. Also, remember the expense of hiring a lawyer is worth it irrespective of what your insurance company has to tell you.
To sum it up,
Don’t fret if your car has been damaged before paying the loan. Your insurance company is most likely to compensate you, or if not, your culprit’s insurance company should compensate you. In addition, whatever money the insurance company has not compensated you for would be covered in the GAP insurance.