Legal Question in Insurance Law in North Carolina

Insurance co won't pay full coverage for car being in a flood

My car got flooded due to weather. I have full coverage on this car. The insurance co says that if they find it to be a total loss they will only pay the bank what it is worth and I will have to pay the rest. This car is a 1999 I financed it last year it was in perfect condition with only 40,000 miles before the damage. We owe about 10,000 on it. To my understanding total loss means not worth anything. Does this mean that I have to pay for the total amount of the car anyway with it being totalled? Is there anything I can do to get them to pay the total of the financed amount since I have full coverage? Isn't that what full coverage means anyway? I also have extened warranty for this car but they say they can't help forces of god. What can I do in this situation?


Asked on 6/18/01, 7:19 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

Re: Insurance co won't pay full coverage for car being in a flood

Get your own appraisal for the vehicle. Get copies of everything the insurer used to value the vehicle. Also have your own repairer estimate the repair costs. If the value of the car is greater than the repair cost, you can have the repairs done.

Full coverage means for all kinds of risks, it does not mean that the insurer will pay for more than fair market value of the vehicle at the time of loss. Or did you have replacement cost on the vehicle?

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Answered on 7/09/01, 3:51 pm


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