I haven't owned in awhile (mostly leased lately as i never seem to keep a car for more than 3 years). But back when i did own i seem to remember my agent telling me that they would just pay out bluebook value.

 

I'm guessing it depends on your area/specific language of your insurance contract...

 

Most don't. That's why most leases include GAP insurance.....to cover what the insurance company doesn't.

What insurance do you have....if you don't mind me asking. It would be very unusual for a company to cover the full price of a new car including taxes.

Allstate started doing it.....but you have to wreck your car within the first month or so....on a Tuesday...between the hours of 1:00 and 2:00.....gotta love the fine print

 

Gap insurance covers the difference between the fair market value of the vehicle (which your insurance covers) and the amount owed to the financing company.

Without GAP, you would be in a situation of totaling your vehicle while you still owe more than the car is worth, essentially still paying for something you dont have...

To the best of my knowledge, should you have financed taxes and everything as such, you'd be covered. If not, and decided to pay your taxes up front, then you'd be out of luck.

Once again, best to check with your insurance company on what is/isn't covered. And to be cautious, I'd also ask them to provide you with the actual section in your policy. I have encountered plenty of agents which say something is covered when it's specifically excluded in the fine print in the policy...

 

I have lojack on my car. But I have had my car stolen twice in my life.