Avondale owns 61.6% of its homes and finances a great many of its cars. When a financed vehicle is totaled, the policy pays what it is worth, not what you still owe.
Actual cash value is the market value on the day of the loss. The loan balance is not part of that calculation.
Three things that decide what you are left with after a vehicle is written off.
A total loss pays actual cash value: what that vehicle, that age, that mileage, was worth the day before the crash. A newer car financed over a long term can be worth less than the outstanding balance for much of the loan, and the difference is still owed on a car you no longer have.
It is inexpensive, it is sometimes already included in the finance agreement, and it is sometimes sold twice to the same person. Knowing whether you have it, and from whom, is a five minute check that is worth doing once rather than never.
The steepest drop in value happens early, while the balance is still near its highest. That is the window where the shortfall is widest and where people are least likely to have thought about it.
Questions that only matter when a vehicle is financed or leased.
And roughly what is left on it. That single answer decides whether gap is worth discussing.
Dealers frequently include it. Buying it twice is money for nothing and it happens often.
On a financed car the lender usually requires both, and the deductible you chose affects what reaches the loan.
Tell us which vehicles are financed or leased and roughly what is outstanding.
We find out whether there is a gap before a total loss finds it for you.
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