My Wife and daughter were hit yesterday and our car was crushed. If he has Insurance do they payoff the loan of the car and then give you a check to buy another car . It was a 2004 SUV? Do they give you book value? How does that work?
Most insurance companies will pay FAIR MARKET VALUE.
There are a number of different methods by which insurance companies determine fair market value. Book value, is one of those methods, however there is no guarantee that your carrier will use book value. Additionally, your perception of "excellent condition" may differ from the appraiser looking at your car.
If your car is totaled, the insurance company is not obligated to pay off your loan. They are only obligated to pay the fair market value of the car. There are a number of reasons for this:
1) an insurance company has no control over the conditions by which you finance your car. Eg. if you have bad credit and finance a car at 28.8% interest. Or you purchase a car over the MSRP.
2) depreciation varies from car to car. Eg. a Ford Taurus will depreciate faster than a same year Toyota Camry. Therefore the market value for the Ford will be less than that of the Toyota, even if you purchased them at the same time for the same price.
If the actual cash value (fair market value) of the vehicle exceeds the amount of your loan, then yes, the insurance company will pay your loan, then send you a check for the positive equity (balance of the acv).