my car which is on finance was written off, will the insurance company just send me a cheque for its value or pay off the finance company?
2006-08-25 01:54:30 · 6 answers · asked by ianbrown11 1 in Cars & Transportation ➔ Insurance & Registration
I'm not sure where you are, but in the US they will not pay you directly. They have a duty to the lienholder to protect their interests. At the very least, it would be copayable, but most likely to avoid the hassle of you signing and sending it on, etc. they will pay the lienholder what is owed and you any difference if they pay more than the loan.
2006-08-25 10:17:20 · answer #1 · answered by Chris 5 · 0⤊ 0⤋
If the car is on Hire Purchase, or indeed any type of loan OTHER THAN a personal loan, they will pay the cheque to the finance company.
The bad news is this: if the amount paid does not cover the total amount outstanding under the agreement, you will still be liable for the balance.
Make sure that you are confident that the payout is fair - they will often try to get away with paying well below the true value.
Check dealer retail prices for identical vehicles just to be sure that they are not trying to rip you off.
If it is a personal loan, in which there is no lien on the vehicle, the cheque comes straight to you.
Best wishes with this!
2006-08-25 09:01:17 · answer #2 · answered by aarcue 3 · 1⤊ 0⤋
They will send you a check, and if you choose to, you pay the finance company. If you get a lawyer you could get a lot more money for your losses and speed things up a bit.
2006-08-25 09:02:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They send you a check made payable to both you AND the finance company, so you can't cash it without the finance company signing off on it.
2006-08-25 10:30:18 · answer #4 · answered by Anonymous 7 · 0⤊ 0⤋
This happened to my partner when his motor scooter was stolen and set fire to. He was sent a cheque for a new scooter, and he continued to pay the finance as before.
2006-08-25 09:00:44 · answer #5 · answered by Dawn 4 · 0⤊ 0⤋
they'll probably send you the cheque, if it was another persons fault you'll have a months wait or more.
2006-08-25 09:08:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋