Car was hit by a drunk driver?

My parents car was hit by a drunk driver going over 50 mph (well over the speed limit, and there were witnesses to testify this) and is likely going to be totaled. Luckily they re okay, but they just bought this 2016 Ford Escape SE for $25,000 last summer, and my dad is worried that they will only get the Bluebook value of $17,000 for the car, and will be out $8000. So are they basically screwed even though this accident was clearly not their fault?

See a very good lawyer. You can get more than $8000.

After your folks speak w/the insurance adjuster from their insurance company, and if the adjuster will not provide an amount close to what the vehicle loan pay off is, then an attorney consultation may be the thing to do

Unfortunately they are already out the $8,000. It's called depreciation, and it's already happened.

See the thing is they no longer have a brand new Ford Escape. They had a very nice USED Ford Escape, last years model.

Now what they should be holding out for is enough $$ to buy another very nice 2016 model Ford Escape, and Bluebook reckons that should be about $17K. So start by checking around some dealers and see if one has an old stock, trade-in, ex demo model for around that price, and under 10K miles. If you can, then you are put back into the same situation as your were before, and that's what the insurance owes you.

If you can't find one for that price, then you have to haggle with the insurance company, and say it's going to cost $xx to replace the car, and that's what you want. If they point out to you that there's a perfectly good 2016 Escape on a local yard for $17,995, they are aren't going to pay you any more.

It is true, Tom, the at fault motorist's insurance provider is only legally or otherwise obligated to give your parents the fair market value of the Ford. It does not matter that your parents might have paid or what they might still owe. Should they wish to recoup anything additional they would have to take them to court. Frankly, court ordered awards of this type are rarely granted in such a situation.

HI so sadly that's life sunshine.

Your Dad is correct. He will get only "Fair market value" if his car is totaled. If Dad's car was financed and Dad had GAP insurance he would get from the GAP insurance the difference in "Fair market value" and what he still owes on the car. (IE: The "GAP")
It is a very bad idea to owe more an a car than it is worth

BTW. Hiring a lawyer as some here are suggesting will do NO good and would be a total waste of money.

Fair market value means there are cars for sale at the Blue Book amount. If your parents buy one of those vehicles, they will be made whole. When you do a retail valuation at www.kbb.com, look for the vehicles for sale that are similar to yours. Just buy another vehicle with the settlement amount.

Drunk or sober, insurance can only pay FMV (fair market value). In other words, (if not) for this accident, how much could they have sold this vehicle for?

So, If, the FMV is $17,000 and say for instance Dad owes the loan company $22,000, then insurance pays $17,000 to the loan company and your dad would still owe $5,000 on the loan.

But, if you dad has GAP, then GAP pays the loan company the $5,000 to (pick up) the gap in the loan.

Or, if dad had insurance with a company that had new car replacement, then if totaled, then the insurance company will pay for a (new) car to replace, but, most of these policies are only for 1 year, and/or have mileage restrictions of either 12,000 or 15,000, then goes back to FMV.

That's the way insurance works, and no lawyer can change the facts.

They are not out 8000.00
they drove it while it was depreciating
you get compensated for what it is worth now, not for what you paid for it

If you over paid for the car you are out of luck. You only get the value of the car which mean how much that car is selling for at local car dealers. You don't say how the accident happened for anyone to comment on who was at fault for the accident.