Playing Chicken with State Farm Insurance -- Who wins?

Question

State Farm paid against my totalled car, and Gap-Insurance paid their share, but did not cover the ENTIRE amount of the loan.

There are $3000 outstanding on the loan with the bank.

State Farm wants their car (since they paid against it) but they can't get the title yet because the lien holder hasn't released the title due to the fact that there are $3000 left to be paid.

What to do? I can't afford it all at once.. and State Farm won't wait until I can finish paying it off because the car is sitting at the Police Impound facility accruing storage fees on a daily basis!

What is going to happen?

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Answer 1

Ah, I bet you rolled over negative equity from a previous vehicle, when you bought the new one - and that's where the $3,000 comes from.

Well, you need to tell the adjuster, I'm sorry, I don't have $3,000. You can move the car, or you can write it off, but I can't get the title for you. Here's the telephone number and contact name at the bank, talk to them.

My guess is, the bank will continue to not release the title, State Farm will not be able to get the car out of the impound lot, so the fees are going to keep accruing, until the city attempts to repo the car.

Meanwhile, the bank will be hounding you to keep making your payments until the loan is paid off.

I see collection agents in your future, a LOT of them, from several different places. I strongly suggest you get a bus pass, and save up to buy your next car for cash.

Answer 2

You'll either have to pay the $3000 or at least arrange something with the lienholder ASAP.

State Farm doesn't care about your distress or your situation or whether you wake up paralyzed tomorrow. They don't even care enough to wish anything bad on you. They just don't care one way or the other.

Your lienholder is the only party I can think of to negotiate with at this point.

Strange that your gap insurance didn't cover the balance...you must have been way bottoms-up on this loan, with no down payment and a high interest rate.

Well, sorry for your troubles.

Answer 3

No they should not be. There are countless hundred courtroom situations pending with State Farm. the human beings who're sueing are doing so because of the fact they don't look to be getting the completed volume they experience they could have. 2d, and maximum mandatory, ALL coverage companies carry the alternative of pink LINING districts. in addition they try this with automobile coverage as properly. they have the splendid to refuse and guard that superb, by skill of regulation whilst claims are in some distance extra advantageous than the insurance. contained with regards to Katrina...New Orleans is six hundred ft under sea point. every person who would prefer to stay there would not comprehend the actual data approximately how erosion can harm their properties and surrounding lands. it is the concern to the coverage organization to 'flow on' whilst there are too many motives for declare. this is their option. anybody is getting rediculous approximately making claims besides. i comprehend Katrina sufferers are in a coarse spot, and it is going to be hell to objective and placed ones existence returned mutually whilst all they have are scraps to artwork with. i will not be able to think of dealing with that when which attempting to p.c.. up the products and flow on. and that i do experience that's in basic terms superb and truthful that the coverage companies pay the claims, IF in actuality the shopper replace into paying for that distinctive insurance. in the event that they weren't paying for the insurance, then they have no declare and could be staisfied with what the coverage organization will provide them. however the main's ALL coverage companies have the loose option to tug out of an area. yet whilst the human beings of latest Orleans have been clever, they might sell the valuables, tear down the abode and flow upstate and removed from the sea front.

Answer 4

Just like another person answered, State Farm doesn't give one rats-@ss about your problems or you. However, don't give up all hope yet. One thing on your side is the fact that the Farm has a very good track record of honest and fair claims practices. My advice is to contact the claims adjuster, (even his/her manager if need be) and ask for options. One thing you can count on -- you WILL have to pay the difference. Just keep a cool head and for heavens sake do NOT get combative. These guys do not play around with their money and they have an army of lawyers on staff that will squash you like a bug if you push them.

Answer 5

You have a major problem. You are the titled owner of the car until you sign it over to Statefarm (which you are required to do). That means you are responsible for all the storage fees that are accruing.
You need to call your lienholder and speak to them ASAP. Explain your situation, see if they will allow for release of the vehicle. Depending on the state, you may not even need the lienholder to approve it. This is in EVERYONE'S best interest. Once the vehicle is released, Statefarm can move it out and to one of their yards while everything gets resolved.

Answer 6

You over-financed, didn't you? How did that happen? Did you have an amount owing on a trade-in? Did you do a loan consolidation adding unsecured amounts to the original loan? All you can do is negotiate with the bank, because that $3,000 will have to be paid, or perhaps you have someone in the family that can help you out with a loan, again you will have to repay it.

Answer 7

In the battle between you and State Farm, bet on State Farm!