Friday, March 14, 2014

My car was totaled in a collision that was not my fault. Does insurance owe what I still owe on the car?

Answer: Tough circumstance.

The at-fault driver’s insurer is obligated to pay “fair market value”.

Sometimes, that is less than what you owe. If you have “gap insurance”, that will often pickup the difference. If not, you may be stuck.

There is no bright line authority on this issue in Arizona.