I recently purchased a quad and financed it. Insured it: liability/med/comp/collision/custom parts, is what the policy says.
I just got 11hrs on it and wrecked it. The quote from the dealer to fix it came out to less than $1000.00 of the total price, so it was considered totalled by both the ins comp, and the dealer.
My question is, how much of the lein/loan is the Ins. comp. responsible to pay? I know it's a broad question, but what is being done currently is: Ins. Comp. rep has explained they will cover the price of the Unit/quad. which is not the total of the loan. I'm left with: the deductible, as well as all of the shipping/freight/building/tax/title/extended warrenty and vehicle prep prices. I've never totalled anything before and don't know if this is what I should be expecting to pay. In all, I'm going to be left with about a $3000.00 loan on a machine that will be going to auction soon. Has anyone recently gone through this and do you have any advise as to how to get the ins comp. to pay out more? My agent is currently in the process of working out a deal with the lein holder, but I think I'm going to get stuck with a ballance. Is this what all "Full Coverage" ins policys cover? Thanks in advance for any help, suggestions or advice.
PM me if any of you are agents and have an inside view of what's going on here. Thanks.

TR.

 

I doubt they'd cover the loan balance. The policy is for the ATV, not the loan. If the loan is upside down I would say that's your problem, not theirs.

 

Most insurance companies will only pay fair market value for your insured item. There are policies that you can buy that will pay off the loan regardless of what you owe but this costs extra and not sure if available on quads. At this point there is not much you can do if you owe more than it is worth. [img]i/expressions/face-icon-small-sad.gif[/img]

 

I'm afraid the other two posters are correct. Say you paid $6,000 (MSRP) for a quad. It then costs an additional $1,500 in sales tax, prep charges, etc., for a total of $7,500. When totaled; the insurance company pays you the market value of a used quad, once you drive-it off the lot, it might lose $1,500 in value (Kelly Blue Book) over the MSRP price of the new one you bought. It would be really easy to get $3,000 "up-side down," in this scenario. The amount of the loan has nothing to do with the insurance pay-off amount. If you had over-paid over MSRP (I.E.-gotten a screwing from the dealer, or buying a model that has just come out, and paid too much), you would be even worse off. Sorry for your situation. Just trying to explain why this happens.

KC

 

Hey, thanks for the replies. What you've all explained is exactly what went down yesterday with my ins agent. I guess I lucked out in that they(ins co.), are going to pay the total price of the quad and not depreciate it as it had very low miles. They are also going to pay the sales tax of the new quad if that's what i decide to do.
I've also been told that the extended warrenty i bought will transfer, but i don't know if I'm stuck buying the quad from the same dealer now because of that?
Again, thanks for the replies. I will get another one, as this incident has not swayed me from having fun.

TR

 

As long as you didn't buy some screwy dealer only extended warranty you should be fine. You'll just have to probably buy one from the same manufacturer if it will indeed transfer.

 

I would stay with your insurance co.- They treated you very well. Good luck!