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Upside down, who pays?

As competitive as the auto insurance industry is today you have to ask yourself, if my vehicle was totaled in an accident who pays? If you happen to be leasing or financing your vehicle, guess what, you'll probably be left holding the bag. Most insurance companys' will fight you tooth and nail before they reach into their deep pockets to pay any claim let alone one because your vehicle has been appraised as being a total lost. Most vehicle owners do not realize that their going to be held responsible to pay any outstanding balances that's not covered by their auto insurance coverage. The finanical institution just wants to get paid. Though the insurance company will pay some portion of the outstanding balance the chances are you'll get stuck paying a good deal more than you might expect. How much of the cost will you absorb will depend on the year, make and milage. Many vehicle owners leasing or financing today like to purchase American made models because of their loyality to this country. The problem is, your American made vehicle in all likelyhood will have a greater depreciation factor than most foreign manufacturers vehicles. Another question you have to ask yourself, does the auto insurance industry charge more in premiums for American made auto's or do they charge based on your driving experience? Considering I once worked in the auto industry selling vehicles I have to tell you the answer is probably yes to both. You now have to ask what will I be expected to pay. Generally I would assume anywhere from 20 to 40% of the unpaid balance owed if it's an American made auto. Those of you lucky enough to own a foreign made auto will pay less because of their higher resale value for the model purchase something to consider when purchasing your next vehicle because of the depreciation factor. As much as the insurance industry won't tell you about purchasing a foreign made vehicle oppossed to an American made it is your responsibility to do your homework before financing or leasing any automobile these days. In the end whether you lease or finance your vehicle if the unexpected did happen and your vehicle has been in an accident and appraised as being a total lost by all mean consider the cost of insurance as well as the purchase price of your next vehicle.

 
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