Topic: Poor insurance coverage or another upside down story left out of the story

[quadzilla]

https://kitchener.ctvnews.ca/waterloo-woman-out-thousands-for-car-totalled-by-stolen-hit-and-run-driver-1.6973477

Insurance efforts
Lachapelle assumed her insurance through Echelon would cover all the associated costs from the crash, including the $21,000 she still owed on the vehicle, a rental car and eventually a new vehicle.

Instead, she said they offered her about $14,000 and nine days with a rental.

I'm saying the real issue here is being upside down on the loan. Funny-Not-Funny how the article totally missed that part of the story.

[Firm]

Yeah, insurance isn't on the hook for you being upside down.

What is interesting in there though; the fact that if the at fault driver is not identified, as in this hit and run case, the coverage falls to the collision coverage portion of your policy, not the direct compensation. So, in theory, if you're not carrying collision coverage, you'd get nothing in this situation.

[JohnnyMac]

https://kitchener.ctvnews.ca/waterloo-woman-out-thousands-for-car-totalled-by-stolen-hit-and-run-driver-1.6973477

Insurance efforts
Lachapelle assumed her insurance through Echelon would cover all the associated costs from the crash, including the $21,000 she still owed on the vehicle, a rental car and eventually a new vehicle.

Instead, she said they offered her about $14,000 and nine days with a rental.

I'm saying the real issue here is being upside down on the loan. Funny-Not-Funny how the article totally missed that part of the story.

This is exactly why GAP insurance is key when your vehicle loan is expected to be higher than your vehicle insurance coverage.

[JohnnyMac]

Yeah, insurance isn't on the hook for you being upside down.

What is interesting in there though; the fact that if the at fault driver is not identified, as in this hit and run case, the coverage falls to the collision coverage portion of your policy, not the direct compensation. So, in theory, if you're not carrying collision coverage, you'd get nothing in this situation.

I'd assume it'd be similar to your parked car was crashed into ran.  Or maybe that falls under one's home insurance?

[WP v3.32]

Yeah, insurance isn't on the hook for you being upside down.

What is interesting in there though; the fact that if the at fault driver is not identified, as in this hit and run case, the coverage falls to the collision coverage portion of your policy, not the direct compensation. So, in theory, if you're not carrying collision coverage, you'd get nothing in this situation.

This more a story of who sold her the car, when and what price, really.

[HeliDriver]

I'm saying the real issue here is being upside down on the loan. Funny-Not-Funny how the article totally missed that part of the story.

Well, there was this:

“An insurance company will pay you no more than the car’s actually worth,” Anne Marie Thomas, director of consumer and industry relations with the IBC said. “You’re probably not going to find a year, make and model of her vehicle on AutoTrader or another used car site or a used car lot that sells it for the same value as her loan.”

But, yeah, the whole article basically reads like some poor woman got screwed over by her insurance company. Has she really filed a lawsuit against them to try to get some money back? 

I liked her last line: “Nobody is taking responsibility and people need to know this,” she said.

Uh, maybe it’s your responsibility to understand how your insurance works and the implications of being upside down on your loan?

[rrocket]

Yeah, insurance isn't on the hook for you being upside down.

What is interesting in there though; the fact that if the at fault driver is not identified, as in this hit and run case, the coverage falls to the collision coverage portion of your policy, not the direct compensation. So, in theory, if you're not carrying collision coverage, you'd get nothing in this situation.

IIRC, Ontario's mandatory "uninsured driver" insurance covers vehicle damage in hit and run.

[blur911]

Yeah, insurance isn't on the hook for you being upside down.

What is interesting in there though; the fact that if the at fault driver is not identified, as in this hit and run case, the coverage falls to the collision coverage portion of your policy, not the direct compensation. So, in theory, if you're not carrying collision coverage, you'd get nothing in this situation.

IIRC, Ontario's mandatory "uninsured driver" insurance covers vehicle damage in hit and run.

Yup, had to use that when our Outback got totalled while sitting in our driveway by a hit and run

[Shorlaw]

“If this hadn’t happened in the first place, I wouldn’t now be $38,000 in debt,”

From $21K on a $14k vehicle to $38K on a $30K vehicle, lather rinse repeat, but it's the insurance company's fault

[sailor723]

“An insurance company will pay you no more than the car’s actually worth,” Anne Marie Thomas, director of consumer and industry relations with the IBC said. “You’re probably not going to find a year, make and model of her vehicle on AutoTrader or another used car site or a used car lot that sells it for the same value as her loan.”

Not always true. If you have a depreciation waiver you get 100% of your purchase price back on a new car in the case of a total loss. Waiver usually runs for the first 2 or sometimes 3 years.

Ask me how I know. 

[WP v3.32]

“An insurance company will pay you no more than the car’s actually worth,” Anne Marie Thomas, director of consumer and industry relations with the IBC said. “You’re probably not going to find a year, make and model of her vehicle on AutoTrader or another used car site or a used car lot that sells it for the same value as her loan.”

Not always true. If you have a depreciation waiver you get 100% of your purchase price back on a new car in the case of a total loss. Waiver usually runs for the first 2 or sometimes 3 years.

Ask me how I know. 

 depends on  the provinc I believe,  I think some province does not allow "gap insurance"

[sailor723]

“An insurance company will pay you no more than the car’s actually worth,” Anne Marie Thomas, director of consumer and industry relations with the IBC said. “You’re probably not going to find a year, make and model of her vehicle on AutoTrader or another used car site or a used car lot that sells it for the same value as her loan.”

Not always true. If you have a depreciation waiver you get 100% of your purchase price back on a new car in the case of a total loss. Waiver usually runs for the first 2 or sometimes 3 years.

Ask me how I know. 

 depends on  the provinc I believe,  I think some province does not allow "gap insurance"



Well, works like a charm in New Brunswick. Drove a Mini Cooper S convertible for 23 months and then got every penny back except the $100 AC tax.

[quadzilla]

When I was getting an Ins quote on the RAV I'm sure they said 4 year replacement cost. Will verify when I call back closer to the delivery date as they would only guarantee any quote for only 30 days.

[ArticSteve]

In Ontario, it's 4 years for Waiver of Depreciation.   Pretty sure gap insurance is part of any auto lease.