My Tesla Cybertruck Got Totaled After It Was Sideswiped by an E-Scooter. All-in, I paid $198K, but Insurance is Only Offering Me a “Fair Market Value” of $77K. I Still Owe the Bank $171,500

This story has some suspicious details that make me wonder if it's legit.
Did the Cybertruck owner have a standard policy that insured the truck for only its market value, or did he pay extra to insure the $50K he overpaid? Seems to me that any policy that covers $50K worth of overpayment would have a hefty premium.
Did the bank loan him the extra 50K as part of the truck loan, or a separate loan?
If the bank loaned him that money, I want to know what bank it is, and what the terms are. My bank will certainly not write me a truck loan for $50K over the MSRP.
Oh, and pre-supposing that the insurance policy is for the truck's fair market value, then that is all that Allstate is responsible for. They didn't overpay, the owner did.

There's a reason Gap Insurance is still a thing. Poor planning on the buyer. He put all his chips on red and got upset when the ball landed on black. Sorry for your loss; but it's still YOUR loss...

That is hilarious.
That is what you get for paying stuff above what it is actually worth it.
Guess what? If nobody pays a premium over what is worth the dealer wouldn’t price gouge people. But people like you go and buy it anyways reinforcing price scalpers ways.
well deserved 100k lesson.

Someone paid $50k in order to pay $200k to get a truck that a 4-yo child wouldn't call a truck, financed it, then didn't look at your insurance to make sure it covered replacement value. Anyone who did this is a fool.
Also, why would a bank finance this amount when it's way above KBB value.
I call bullshit on this whole story.

He paid money for the first. That's on him. Not his insurance company.

It's financial ignorance pure and simple. He is the one who agreed to overpay for the vehicle. He could have purchased gap insurance, but apparently didn't buy it. So many mistakes he made with this purchase.

But, this is what we call education. So if he learns the (expensive) lesson to not waste money, and to properly insure a vehicle if you don't want to accept the risk on your own, it's a lesson that can guide him to make better decisions in the future.

It is unfortunate to lose almost $100k, but there is nothing illegal or even unethical about what the insurance company has done. If the fair market value is really about $80k, then that is what the insurance company should pay. That is how car insurance works, and everyone knows that.

Self selection if you ask me. If you are going to pay $50k over MSRP and didn't think about buying gap insurance, that is a self inflicted wound. Anyone who's willing to pay an extra $50k ona vehicle gets no sympathy from me and deserves what is happening to them. I used to be a car salesman and I've learned to always buy cars that are 3-5 years old. At that point the biggest depreciation has already happened and you'll pay about 40-60% of the cars original value. Even of you don't have a warranty, any repairs you may incur will pale in comparison to the potential savings.

If he’d bought gap insurance he wouldn’t have this problem.

New to car insurance? They only care about the book value, like banks who give loans based on uniform value reporting. Any vehicle with a huge depreciation curve should have lit the STUPID CHOICE light especially if he couldn't afford it and had to finance. It is going to bite you if damaged or totaled by insurance. The majority of people who buy vehicles like Cybertrucks are doing financial things that ensure staying poor while trying to look rich, failing to recognize that the real rich don't buy things to impress others. Risk your own money, risking someone else's money.

Turn it into an art piece and then sell it to someone stupider than oneself for $250000 🤣

This is fake news, reporting on it as if it's true weakens your credibility as a trustworthy site. This article should be deleted.

Should have sprung for gap insurance.

Did his agent ever suggest Gap insurance? That would pay the difference between the loan balance and the fair market value of the vehicle. It is commonly available at the time of purchase from the dealership or from the insurance company. He may have a Errors and Omissions claim against his insurance agent.

This is the "indestructible" truck being totaled by a scooter?

I'm sure he received a sub prime loan rate for being "All in". Auto Body repair is far more difficult to match on large flat unsupported panels like the POS cyber truck has.
Remember the Hyundai brand when they first arrived? No one wanted to repair them. Always a total loss. Not even considered for a trade in. Ha ha.

This is why anyone who does not put a significant amount of money down should get gap insurance!

Well, first and foremost… Don’t be mad at the insurance company for giving you market value of $77,000. Be lucky you’re getting that… Secondly, you paid $198,000 for a Cybertruck really? You didn’t buy a Rolls-Royce or an Aston Martin or Ferrari or Bentley that can justify the insurance claim… You bought a Cybertruck for God, sakes. And third the reason why the value went down so badly is because of the person who is running the company. He seems to have the effect on lowering the value of Tesla’s the minute. He opens his mouth. Maybe he had he been a decent human being Tesla’s would still be worth The money, but unfortunately, his mouth has devalued anyone who owns a Tesla, including myself. It’s interesting how he continues to profit off the people who are buying Teslas. In the meantime the people who are buying Teslas are losing money.

The insurance carrier is correct unless he bought replacement value policy rather that a regular policy. He also should have purchased GAP Insurance which would have covered the difference.

You’ll be fine

The insurance agent failed to offer gap coverage or you declined the coverage. Gap coverage protects car owners who are upside down on new vehicle purchases where the amount on the loan or what was paid is more than the worth of vehicle. This is not an insurance company problem but an agent problem. If your agent didn't offer you the coverage, see if you can file a claim on their errors and omissions policy.

By the way...Allstate is the worst. Go to an independent agent.

sounds like he can afford to lose that much money,,,sounds suspicious anyways..like a scam

There is a pretty simple solution. In fact there are two. First is Gap insurance. If he had gap insurance they would pay the difference and he would be done with it. It seems odd that a lender would lend him $200k,(like 150%-200%LTV) with what seems like little to no cash down on a cybertruck, without requiring/including gap insurance for their own protection. The lender usually requires it at application when your above a certain LTV(except in states its been outlawed like CA & TX). And I cant imagine why anybody would decline that coverage when they know they are upside down before its even delivered. Now for the second solution assuming somehow there is no gap insurance, If fair market value is 77k, they should be able to purchase/replace the totaled vehicle with another on the used market...The foundation series etc is taken into account when they determine fair market value. He then still has an outrageous loan on his same vehicle and nobody to blame but himself for paying $50k over sticker, but hes in the same spot he was before the accident. Source: I own an insurance agency operating in 38 states.

Expecting anything from a auto insurance that you are happy with is not going to happen.

Two words: Gap Insurance.

Long-time lending manager who is married to an insurance agent.

First, ALL vehicles depreciate the moment you drive them off the lot. That's why they try to sell you Gap Insurance at the dealership (granted, you should shop around for the best rates). Gap pays for the "gap" between what you owe and what your loan payoff is should your vehicle be totaled.

Second, ALL insurance companies will pay fair market value - this isn't an Allstate issue.

Someone buying a $200k vehicle at $50k over book made a poor decision at the getgo. If he didn't have the kind of money to pay cash for it, he tragically overspent.

Oh, and also: He likely won't be given the option to pay the loan as it was written. Once a vehicle is totaled and you get funds from the insurance company, those funds MUST go toward payoff of the loan. The $171,500 will be due and payable immediately and in full.

What a mess. Let this be a lesson to anyone else who overspends and under-insures.

Life is suffering, ain't it

He needs a new financial guy. If you can’t afford your pay cash for a car you should certainly not finance a $50k premium!

Narcissists pay through the nose but they can afford it. The insurance company is being fair regarding the PRICE but WHERE IS THE DAMAGE... by an E-Scooter? What kinda
t-r-u-c-k is this? How come this vehicle is NOT repairable? Because nobody repairs these things not even Tesla because they don't know how! So basically you're driving and showing off an eggshell that can't do ANYTHING besides what my Kia Soul can do for a LOT less $$. I have no sympathy whatsoever for people that purchase these things.

Is this what passes for news these days?

Reverse image search the crash photo on Reddit. TL/DR, it's from a crash a year ago with a Corolla. Last I checked, a Corolla isn't an e-Scooter.

Do you seriously have *zero* fact checking at Torque News? Because that's what it appears to be.