by tinawiser » Wed Sep 23, 2009 06:30 pm
Does the title holder (bank) have the choice to either accept the finding of totaled or not. Can the bank keep the insurance money and charge the customer for the loan. The amount from the insurance for the totalled car is the same as the bank note balance, yet the bank wants to keep the money as well as continue the payments. The Bank is requiring full coverage after the accident even though they are being paid in full for the car.
Posted: Wed Sep 23, 2009 07:41 pm Post Subject:
tinawiser,
To the best of my knowledge once a Claim is submitted to an insurer, the insurer has the exclusive right to declare an automobile a Total loss or not a Total loss. Neither the Insured or the Bank have any authority in making this decision.
Can the bank keep the insurance money and charge the customer for the loan. The amount from the insurance for the totalled car is the same as the bank note balance, yet the bank wants to keep the money as well as continue the payments.
I don't see how..!!
If the loan is paid in full with the settlement money....... What would there be to make payments on??¿¿
Could you offer a little more information?
Posted: Wed Sep 23, 2009 10:49 pm Post Subject:
That doesn't make sense as Fred stated. If the loan is paid for there is no one to pay. Anyone can argue whether or not a vehicle is or is not a total loss. However, I have never heard of bank wanting to get a second opinion.
Posted: Wed Sep 23, 2009 11:36 pm Post Subject:
I agree... makes no sense. Iif the insurance money pays off the loan what is left to pay?
Posted: Sat Nov 14, 2009 08:30 pm Post Subject:
I totalled my car but still owe the bank. Can I use the insurance money to get a new car and just continue to pay the loan?
Posted: Sat Nov 14, 2009 09:20 pm Post Subject:
I totalled my car but still owe the bank. Can I use the insurance money to get a new car and just continue to pay the loan?
The insurance company will need the lien free title on the vehicle so they will need to contact your lien holder and make a payment to them. So the answer is no. You will need to discuss how to address the remaining amount of the loan with your lien holder.I _highly_ recommend that you do not roll the current loan over into anther loan. If you are upside down in your current loan and cannot pay it off then you should not have taken the loan in the first place. Rolling it over into another loan just makes this mistake even bigger.
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