by Guest » Mon Nov 10, 2008 11:08 pm
I totaled my car about a week ago and my husband has been handling much of the details (which is nice). But my concern is that the ins. co. gave us the ACV that is more than we owe on the car. Yet, they cut us a check for the amount that is over what we owe....
Meaning, they did not give us the whole amount. They are supposed to pay off the lender, but this hasn't been done yet. Is this standard procedure? How can we be sure that they will pay off our loan? And how long does that generally take?
Thanks for your help!
Meaning, they did not give us the whole amount. They are supposed to pay off the lender, but this hasn't been done yet. Is this standard procedure? How can we be sure that they will pay off our loan? And how long does that generally take?
Thanks for your help!
Posted: Tue Nov 11, 2008 01:17 am Post Subject:
Typically they pay off the loan and wait on the title before they issue the remaining amount to the insured. In this case it seems like they did the reverse. You can call your adjuster and confirm that they are in the process of paying off the loan. They are usually given a "10 day pay off", after that the interest raises the amount owed. If this happens, the insurance company will then need to step up and pay more then they initially owed.
Posted: Tue Nov 11, 2008 01:36 am Post Subject:
I usually issue them at the same time, leinholder, and insured/claimant and put them both in the mail...I'm sure they have sent the lein pay off, just call and ask the adjuster when they mailed it..
Posted: Tue Nov 11, 2008 10:02 am Post Subject:
When you have outstanding loans on the vehicle the insurance company may issue the check favoring both you and the lien holder, or may issue the check to you ( especially when it's a third party claim) and you're responsible for paying off the bank of the loan amount. However, it seems that I insurer has opted to act quite differently.
Anyways, since they would be needing the title, they are required to pay the loan off to get the clear title from the bank. Just call them up and check the status of the payment.
~Jeremy
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