Cars are frequently written off in collisions in Newfoundland and Labrador. Aylward Law can obtain fair compensation for your injuries from the at-fault driver. Your insurance coverage should include a replacement cost endorsement from the time of purchase. If the car has been destroyed, the insurer must pay you the full cost of purchasing a replacement car. This spares you the consequences of having the car depreciate faster than the loan balance.
Here is an example of what can happen if replacement cost insurance is not in effect. The purchaser fully finances the purchase of a $32,000 vehicle, 10 percent interest, 7-year term. Seven months later, the vehicle has depreciated to $19,000. The vehicle is totaled in an accident. An insurer will give you a cheque for $19,000 jointly payable to you and the bank. The full insurance proceeds are taken by the lender. Even worse, the lender can demand immediate repayment of the $11,000 loan balance.