# Gap between What I Owe and Cash Value



## BillGinCT (May 29, 2017)

I have researched this on Google for hours now and I still cannot find any definitive or even hypothetical answers on the subject. I am hoping someone here might have advice. Feel free to read between the lines, so to speak, as to a hypothetical question, for what I am trying to get at.

I live in CT (so not considered a no-fault state), no worries there. I am an UberX driver. My car's cash value has shrunk drastically to $5900 while I still owe $12k plus.

I know that "phase 1" of Uber's insurance doesn't cover me while working (obviously, just shut off the app and don't mention Uber, simple enough; "I was looking for an all-night supermarket officer."). My car insurance can't do squat. I know that they are only going to pay the cash value. (Hopefully, my whiplash will make up the difference.)

Now, let's say I am in either "phase 2 or 3:", and someone else hits my car. They are at-fault. Is the Uber insurance (James River) only going to pay the cash value of my car or offer enough to at least pay off the car? The reason this confuses me is that they claim to offer a $50k policy for comprehensive/collision with a $1k deductible (and I definitely do not drive a BMW to do Uber, duh). A good lawyer can push this issue.

Part 2 of the question; IF James River only pays the cash value, can I make the at-fault party of the accident pay the difference (cash value vs balance due).

Thank you for your input.


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## tohunt4me (Nov 23, 2015)

BillGinCT said:


> I have researched this on Google for hours now and I still cannot find any definitive or even hypothetical answers on the subject. I am hoping someone here might have advice. Feel free to read between the lines, so to speak, as to a hypothetical question, for what I am trying to get at.
> 
> I live in CT (so not considered a no-fault state), no worries there. I am an UberX driver. My car's cash value has shrunk drastically to $5900 while I still owe $12k plus.
> 
> ...


My car is at equilibrium.
It is worth what is owed on it
I have monitored my mileage and kept it at average for its age. Even when that meant taking breaks from Uber.


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## BillGinCT (May 29, 2017)

Thank you, but I have different circumstances. My car is financed, had no significant unemployment wages, and so I chose to work Uber to pay the bills. Now my car has high miles and not worth nearly what I owe on it.


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## Beur (Apr 14, 2015)

Insurance only pays the value, you need gap insurance to cover the difference between the value and loan. 

Anyone driving for Uber who doesn't carry gap insurance is in for a very rude awakening if they're in an accident that totals the car and the load is higher than then value.


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## BillGinCT (May 29, 2017)

Geico doesn't offer gap coverage. If I take their rideshare insurance hybrid, its only going to cover liability anyway (which is already provided by Uber), so what's the point in buying it? If I choose a different insurance company that does offer gap coverage, I suspect it won't help you because you were driving rideshare at the time, nullifying their responsibility. It's essentially a Catch 22.


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## Mars Troll Number 4 (Oct 30, 2015)

Durp....

If that's the case your SOL...

Time to quit if that's the case. Not worth losing the value of the car AND being on the hook to pay off a totaled car.


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## BillGinCT (May 29, 2017)

I just make sure I am not the one at fault and claim pain and suffering I guess. If the system is going to game me, I have to game it right back. At least I can still work and use the medical rewards to pay the difference, even if I have to wait to pay off the car company. I love driving Uber, I enjoy the flexibility (not so much the pay) and jobs are hard to find. Gotta do what I gotta do I suppose.


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## Older Chauffeur (Oct 16, 2014)

IN the situation you describe, with the other party at fault, why would JR be paying anything? It would be on the other driver and his insurer. I think JR would only step in where the at-fault driver was under/uninsured. Either way, I believe you're only going to get fair market value.
My daughter's car was totaled last year (nothing to do with Uber) and due to high mileage (125k/5 yr old Prius) she took a financial hit. She had carried gap insurance, but had paid off the car a few months prior to the accident. Both she and the at-fault driver were insured by USAA.
You might check with your lender to see if they can add gap coverage or can refer you to a company independent of your regular car insurance.


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## steveK2016 (Jul 31, 2016)

Older Chauffeur said:


> IN the situation you describe, with the other party at fault, why would JR be paying anything? It would be on the other driver and his insurer. I think JR would only step in where the at-fault driver was under/uninsured. Either way, I believe you're only going to get fair market value.
> My daughter's car was totaled last year (nothing to do with Uber) and due to high mileage (125k/5 yr old Prius) she took a financial hit. She had carried gap insurance, but had paid off the car a few months prior to the accident. Both she and the at-fault driver were insured by USAA.
> You might check with your lender to see if they can add gap coverage or can refer you to a company independent of your regular car insurance.


In Phase 3, JR may have to step in if there's injury to the pax that may exceed the insurance coverage of the at fault driver.


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## Older Chauffeur (Oct 16, 2014)

steveK2016 said:


> In Phase 3, JR may have to step in if there's injury to the pax that may exceed the insurance coverage of the at fault driver.


Yes, but the OP was asking specifically about his car being totaled, not about injuries, at least the way I read it. But I did mention JR paying in case of an under insured/non insured driver. It's a good thing when one does the risk assessment before the accident happens.


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## Jagent (Jan 29, 2017)

You don't have to purchase gap insurance from your primary insurer. There are several companies that sell it. Contact your bank and see if they recommend any specific company. Afterall, it's their collateral that you're insuring.


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## DeKalb uber (Feb 5, 2017)

BillGinCT said:


> I have researched this on Google for hours now and I still cannot find any definitive or even hypothetical answers on the subject. I am hoping someone here might have advice. Feel free to read between the lines, so to speak, as to a hypothetical question, for what I am trying to get at.
> 
> I live in CT (so not considered a no-fault state), no worries there. I am an UberX driver. My car's cash value has shrunk drastically to $5900 while I still owe $12k plus.
> 
> ...


Uber will only cover your comp/Collision if you have it through your personal insurance. If not then your only going to be covers on liability which will cover the rider that your driving.


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