The money the insurance company has given me for my vehicle will not completely pay off my car loan. What is going on?

Sometimes an auto loan balance is more than the fair market value of a car.  This can happen when the person who get into an accident has a brand new car that's being financed for the entire purchase price. Particularly with luxury vehicles, the fair market value diminishes immediately after driving off the sales lot! The carrier, in those circumstances, sometimes doesn't pay off the whole loan, (because the market value of the vehicle is less than the balance of the loan), and the vehicle owner can end up still owing on a loan for a car they can no longer drive! If potentially at risk for such a situation, you may consider "gap insurance" in order to cover this difference. Talk to your insurance representative about this, particularly if you're thinking of purchasing a brand new vehicle with little or no money down.

If you have been injured in an accident and would like to discuss your legal options with an experienced Sacramento Personal Injury Attorney, contact us online or call us at 916.921.6400 to set up a FREE consultation. 
Client Reviews
Me and my wife; had a car accident. We were amazed how easy, professional, friendly attorney Ed Smith is along with his staff. Everybody is amazing. Thank you so much, we are very impressed! Alex & Dinah M.
★★★★★
Ed Smith and his office team took on a difficult personal injury case on my behalf and for the passenger in my car. Ed is a top- notch attorney. His staff couldn't have been more helpful and kind. No need to look elsewhere. I give Ed Smith my highest recommendation. Beverly
★★★★★
Ed and Robert have been taking great care of my husband and I for the past 5+ years. They are always there when you have a problem and a quick resolution! Even when the issues have nothing to do with them. They are willing to help ease the pain off your shoulders. They are as good as it gets! Thank you again for everything. Annie T.
★★★★★
Very professional. Great team, staff and service all around. Mr Smith was very honest, straight forward with his advice. He gives the word "attorney" an honest reputation. I will seek his council anytime, and would recommend him at the drop of a dime. Jeremy M.
★★★★★
I would highly recommend Ed Smith to any friends or family in need of a personal injury attorney. Ed, and his staff, are very caring on top of being very experienced in this field. The staff always keeps you informed of the status of your case and they are always easy to reach by phone. Shannon D.
★★★★★
Edward Smith law offices provide competent, thorough, and personable help for victims of personal injury. When you first meet the staff you know you contacted the right office. This law office treats clients like people. I recommend this office to anyone seeking representation regarding personal injury. David M.
★★★★★