by ambortne » Thu Mar 05, 2009 11:02 pm
I was recently in a car accident, not my fault. My insurance in Progressive and my car is on a loan from Members First Federal Credit Union. A rep came out and estimated my car's damages from the accident and wrote out a check to my bank and I.
The car is a 1998 Chevy Cavalier. It was inspected last month and I was told the rear frame is rusting and so is the fuel lines. I want to get the work done that has to get done to make the car run and not the getting the whole bumbers replaced because of the scratches on them. But that is what is on the estimate. I would like to replace the rusting fuel lines as they will need replaced within the year. My question is do have to get what the estimate from my insurance company shows done exactly? The money will still go towards the car.
The bank said they won't deposit the check until they receive a bill from my mechanic. Will they see the insurance estimate and well as the mechanic's?
The car is a 1998 Chevy Cavalier. It was inspected last month and I was told the rear frame is rusting and so is the fuel lines. I want to get the work done that has to get done to make the car run and not the getting the whole bumbers replaced because of the scratches on them. But that is what is on the estimate. I would like to replace the rusting fuel lines as they will need replaced within the year. My question is do have to get what the estimate from my insurance company shows done exactly? The money will still go towards the car.
The bank said they won't deposit the check until they receive a bill from my mechanic. Will they see the insurance estimate and well as the mechanic's?
Posted: Fri Mar 06, 2009 12:27 am Post Subject:
The lein holder is going to require that you have the damages repaired as they are listed on the appraisal. They want this done as right now, it's there car until you pay it off. So they want it in the same good condition it was before the accident. If I borrowed your car, would you want me to return it with damage?
I'm guessing you filed the claim under your policy? Your carrier would be required to protect your lienholder's interest in the vehicle but the other person's carrier would not.
Posted: Fri Mar 06, 2009 04:57 am Post Subject:
Its true that as long as you have the lien on the vehicle you are answerable to the lien-holder. You need to get their approval on the repair work done to receive the payment towards it. Therefore, I think you need to get the bumper replaced as well since its mentioned in the insurance company's estimation.
Posted: Fri Mar 06, 2009 12:08 pm Post Subject:
The bank said they won't deposit the check until they receive a bill from my mechanic. Will they see the insurance estimate and well as the mechanic's?
surely they will go through the both the estimates as it should not have any wide differences in the estimate.Needless to say they will sanction amount only after all the due diligence.
I am sure you will get the fuel lines repaired at the cost of the insurance money.
:arrow:
Posted: Fri Mar 06, 2009 12:13 pm Post Subject:
I think fixing the car to as it was before the accident is what is best. I see the banks concerns in this. Fuel lines are not to expensive to fix...just a little aggravating. Maybe if you get some after market parts put on or if the garage would find some ways to repair a bit cheaper then the lines could be done but that would have to be worked out with the garage itself.
Posted: Fri Mar 06, 2009 04:32 pm Post Subject:
My question is do have to get what the estimate from my insurance company shows done exactly? The money will still go towards the car
Tcope has correctly answered your question, and in your case this is what I would recommend...call the bank ask them if you can use the money to repair this fuel line instead...they may say no..if they do then tell them rather than repair the vehicle you want the money to go toward your next payment...(they likely will allow this, but may require it go toward the principle rather than payment)...then use the extra money you saved on your payment to replace the fuel line.Posted: Fri Mar 06, 2009 07:32 pm Post Subject:
.
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tcope,
The lein holder is going to require that you have the damages repaired as they are listed on the appraisal. They want this done as right now, it's there car until you pay it off. So they want it in the same good condition it was before the accident. If I borrowed your car, would you want me to return it with damage?
Not true tcope. The Bank does not own this automobile. A Lien is not ownership in any, way, shape, or form.
"The Effect Of Liens.
In general, the right of the holder of the lien is confined to the mere right of retainer. But when the creditor has made advances on the goods of a factor, he is generally invested with the right to sell. In some cases where the lien would not confer power to sell, a court of equity would decree it."
The rights & responsibilities of the bank & the car owner to each other should be defined in the loan contract, not the Auto insurance policy.
ambortne,
Look at your loan agreement and read the section about maintaining and protecting the condition (value) of the Collateral.
I could be wrong... and it would not be the first time. :)
FK
Posted: Fri Mar 06, 2009 08:12 pm Post Subject:
Not true tcope. The Bank does not own this automobile. A Lien is not ownership in any, way, shape, or form.
well fred, it's just our 'laymen' way of saying they have the right to make some demands...who gets (and sells) the car if the owner doesn't make the payments? who's also on the title showing they have a 'lein' against it until it's paid for ? Who will slap an enormously expensive collision and comprehensive policy (only they don't care or require liability coverage) on the vehicle if the borrow fails to adequetely protect 'their' interest with coverage (and of course make the borrower pay for this)...lein holder is the answer to all of these....I personally have not had any leinholders that 'make' the owners repair, if they don't repair they will 'make' them apply the amount to their note...to those of us that are laymen, we might say 'they own it' mostly because they have the right to sell it without the borrowers consent (assuming of course the borrow has defaulted) the borrower does not have that same right, the borrower cannot sell the vehicle without the leinholders consent...unless of course the lein has been released.Posted: Sat Mar 07, 2009 01:36 pm Post Subject:
.
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The loan contract is what defines / gives the Bank the ability to impose all those conditions you speak of. Not the Lien..
The Lien gives the Bank an easy [somewhat] way to enforce the Loan Contract. If and only if the Consumer defaults on the Loan Agreement the Bank can take possession of the Collateral. And if necessary... sell it to recover the debt owed.
Just my thoughts, based on second hand experience. Cause I'm not an attorney.
FK
PS, It seems that my Login must have Timed-Out while I was typing the _previous_ Response. When I opened my Short-cut to this page I was still logged-in from a few days ago. But when I submitted the post... "Guest" was displayed in place of my name. Its not a problem... just thought I'd mention it. :)
Posted: Sun Mar 08, 2009 03:53 pm Post Subject:
bank want their money with the interest.that's their prime business.
Now whenever any person defaults on his commitments towards the payments then bank has a legal right to recover it by selling the collateral.
In this particular case car is a collateral.If it is not in good condition surely its market value depreciates and thus the banks business interest in to the car as a loan also gets hampered.
I think in that respect they will surely try to make a attempt to make the car as it was before so in this regard argument of tcope is really acceptable.
Who will suffer the loss for no mistake of their part. :arrow:
Posted: Tue Aug 04, 2009 02:28 pm Post Subject: insurance
We have Progressive and even though they cut a check upon inspection (made out to us AND our lienholder), when I called, they said they could always take that check back if I chose to repair the damage and then they would pay the body shop/mechanic directly. You might want to call Progressive and let them know you want just to repair, then get an estimate, and they may pay what they cover. You would be responsible for the rest. They said they'd just take back the check made out to the bank and free us of that hassle!
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