You spent weeks looking at consumer reports, and visiting various dealerships deciding on what make and model of new car you wanted. You'd had your old car for almost twenty years, and it had well over 200,000 miles on it, so it was time for a change. You finally decided on a bright red, sport Lexus RC F coupe. The kids are out of the house but it does have back seats for passengers in a pinch. You love it. You look for places to go so you can zip around in your hot little red car.

 You're driving around town one day and BAM; a speeding truck hits you. A dump truck, in fact, and it totals your beautiful little red car. You're heartbroken and a little sore, but otherwise uninjured thanks to your seat belt and airbags. Therefore, you file a claim with the insurance company and file a claim. They provide you a rental car. Now you wait for them to pay off your loan so you can get a new car. However, when you mention that to a neighbor who is an adjuster for another company, he gets a funny look and changes the subject. That is how it works, isn't it? Well, it depends.

 Cars unfortunately depreciate as soon as you drive them off the lot. If your vehicle was still just a few months old, the carrier will probably simply deduct the mileage from the purchase price, leaving you in pretty good shape. However, if your car was older, a year or more, that's when it can get ugly, depending on the amount and length of your loan, and how much if anything you put down on it.