by dianecaylor » Wed Apr 25, 2012 11:08 pm
i have hail damage to my car and its more then my car is worth so my options were to have a check sent to my lein holder for a portion of what they could pay and i keep my car. well the insurance company called me back to say that my lein holder wouldn't allow me to keep the car so they would take it and pay it off. I then decided to withdrawl my claim, but then a week later i receive a check in mine and the lenders name for the portion where i keep my car. My lender requires i get the car fixed. I sent them the check to get it endorsed and they are suppose to send it back. Can I get in trouble if I don't use the money to have the hail damaged fix?
Posted: Thu Apr 26, 2012 12:33 am Post Subject:
Can I get in trouble if I don't use the money to have the hail damaged fix
Let me put it this way... your lien holder won't send you the signed check until you can produce something to show them the vehicle has been repaired.
Posted: Thu Apr 26, 2012 06:07 pm Post Subject:
It appears that the amount owed on the car is greater than what the car is worth. The lienholder is entitled to the insurance company's check and you are responsible for paying the remaining balance of the loan. Find out from the lienholder how much is owed on the car after deducting the amount of the insurance company's payment.
It is not a wise use of money to continue to make loan payments on a vehicle with damage that is greater than car's worth. Also, the lienholder will continue to require proof of physical damage insurance while the insurance company will deny payment for any subsequent physical damage because they have settle a claim for a total loss to the vehicle. Also, in some states there are laws against keeping a vehicle that is a total loss. Or, in some states after the insurance company makes payment for a total loss it is required to obtain a salvage certificate which brands the vehicle as a total loss. :)
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