Ferrari Mailing List: Re: (NFC) Lamborghini crash

[Britt2Asa (Britt2Asa]

I find this a bit interesting because here in the UK the insurance will  only 
payout the value of the car at the current market and WILL NOT pay the  
balance of the loan.
 
The only exception to this is "declared value" policies but this generally  
relates to classic cars. I had this policy on my 328GTS and it required  
independent value estimates from authorised valuers (authorised by the 
insurance  
company). Because it was deemed to be a classic car (due to its age and type)  
the insurance company wasn't worried about the value dipping and in fact 328s  
here have been at the same price for years.
 
Is it true that in the USA if you buy and finance a newish  Lambo/Ferrari/ect 
that the balance of the finance is paid off if the car is  totalled? What if 
you put down 50% to have lower payments and then it was  totalled? How does 
that stack up to somebody who puts 5% down?
 
Its been 15 years since I had a car insured in the USA..back then this  
wasn't even a consideration for me...
 
Britt

If you  read the comments below the TMZ article, I think one of those
guys got it  right:

"Thanks to this terrible economy, people are abandoning horses  they can
no longer afford, purposely walking away from expensive homes,  and
now.... crashing cars to get the insurance payouts to settle the  loan."

Not that it's impossible to do something stupid in so powerful a  car on
residential type streets, but I think more of this is coming. If you  had
a 6 month old F430 Spider that you had paid $250k for and was now  worth
$130k on the secondary market, that might be a fairly strong  motivation
to have, as I believe Clyde calls it, an unexpected terrain  contact.

-- charles






BR in the  UK
1986 328GTS (LHD 89,940km) Died August 19, 2006 Shrewsbury UK
1980 400i  (RHD 74,000 miles)
Searching for the right 512TR
2003 BMW 530d
1991  Alfa Spider S4 LHD
1993 Alfa Spider S4 LHD