Given the high cost of automobiles, most people must finance the purchase of one. if they do not put down a large down payment, the vehicle can quickly become worth less than what they owe because vehicles depreciate- or lose value- as soon as they are driven off the dealership lot. This can be a huge problem if you are the victim of an auto accident and your vehicle is totaled by the insurance company. You may be shocked to discover that the insurance company is offering less in settlement for your vehicle than what you owe on the vehicle’s loan. Are they allowed to do this?

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