If the insurance company "totals" my car should'nt they pay it off?
Total Comments: 3
Posted: Fri Apr 24, 2009 09:16 pm Post Subject:
They owe the value of the vehicle. The contract between you and your lienholder is just that... between you and your lien holder. There are many people with poor credit who pay much more for a vehicle then its worth. There are also people who roll over an existing loan into the current one. The insurane company is only responsible for the loss of the vehicle, not the cost of the loan.
Posted: Sat Apr 25, 2009 05:41 am Post Subject:
If the insurance company "totals" my car should'nt they pay it off?
Nope, they would only pay the actual cash value on the car. If you have a 'gap' coverage in force that would pay-off the difference between the lien and the claim check.
Now, in a situation of no gap coverage you would still be responsible for the remaining of the loan. Therefore, totaling the car doesn't imply that the insurer would pay-off the loan on your behalf.
~Jeremy
Posted: Sat Apr 25, 2009 10:30 am Post Subject:
If the insurance company "totals" my car should'nt they pay it off?
OP they would only pay off the Actual Cash Value like tcope and Jeremy has pointed out. You would still be responsible for any outstanding loan amount that you have on the car. If you are expecting that your auto insurance company will pay off your lien, you are mistaken my friend. You will only get what your car was worth before the accident minus the deductibles.
Posted: Fri Apr 24, 2009 09:16 pm Post Subject:
They owe the value of the vehicle. The contract between you and your lienholder is just that... between you and your lien holder. There are many people with poor credit who pay much more for a vehicle then its worth. There are also people who roll over an existing loan into the current one. The insurane company is only responsible for the loss of the vehicle, not the cost of the loan.
Posted: Sat Apr 25, 2009 05:41 am Post Subject:
If the insurance company "totals" my car should'nt they pay it off?
Nope, they would only pay the actual cash value on the car. If you have a 'gap' coverage in force that would pay-off the difference between the lien and the claim check.
Now, in a situation of no gap coverage you would still be responsible for the remaining of the loan. Therefore, totaling the car doesn't imply that the insurer would pay-off the loan on your behalf.
~Jeremy
Posted: Sat Apr 25, 2009 10:30 am Post Subject:
If the insurance company "totals" my car should'nt they pay it off?
OP they would only pay off the Actual Cash Value like tcope and Jeremy has pointed out. You would still be responsible for any outstanding loan amount that you have on the car. If you are expecting that your auto insurance company will pay off your lien, you are mistaken my friend. You will only get what your car was worth before the accident minus the deductibles.
Add your comment