I am still waiting for my insurance to finish the inverstigation. I know for sure that my car is a total lost. I am paying for the car through a car loan coampny
2007-07-24 14:11:52 · 11 answers · asked by zaniya 3 in Business & Finance ➔ Insurance
Regina, The check will have lienholders (loan co) name on it and yours. Thats why they are reffered to as the "loss payee" because incase of a loss the insurance company pays them. Another thing, more than likely they are not going to pay your car off, and they most certainly DO NOT go by the kelly blue book value. That is a myth. Almost all insurance policies on cars pay the "Actual Cash Value" of the car. This may leave you with a balance owed to the loan company, and it may overpay the loan company, in which case they pay you back the difference. Now would be a perfect time to see if you have GAP coverage. Many dealers offer it, and some dont even know if they have it. Check on the settlement statement from when youbought the car. If you dont have GAP and there is a balance owed after the insurance company pays, you owe the balance.
2 things here.... Keep making your payments as usual, you can still be held accountable for late fees and it can hurt your credit right beofre you are going to be buying a new car.
secondly... Negotiate with your insurance company on the value of the vehicle. The first offer is exactly that, an offer. It is negotialble, if you dont agree with ther evaluation of the value, most policies allow you to hire an independant adjuster to negotiate with the company. Read your policy!
And when you buy your next car, BUY GAP INSURANCE FROM AN AGENT, IT IS 10 times CHEAPER!
2007-07-25 05:28:06 · answer #1 · answered by Insurance MAN 2 · 0⤊ 0⤋
1
2016-09-26 10:58:48 · answer #2 · answered by Debra 3 · 0⤊ 0⤋
Since you aren't the the outright owner of the vehicle, they will pay off the loan directly to the company, and any balance left over will be sent to you. If the amount you owe on the vehicle is less than the vehicle is worth, you will still owe the balance. (This happens a lot since many people buy vehicles with nothing down.)
2007-07-24 16:13:06 · answer #3 · answered by Phil 5 · 0⤊ 0⤋
The check will be made payable to both you and the holder of the loan, in order to protect the lien interest of the loan holder.
If you receive less from your insurer than the amount of the loan value, you will be expected to pay any deficiency to the lender.
2007-07-24 14:34:46 · answer #4 · answered by acermill 7 · 2⤊ 1⤋
they usually pay what the going value for the car is..they will do a Kelly blue book and usually a local comparison in your area. If you car loan is higher then its worth, then you will have to pay the difference unless you have gap insurance.
2007-07-24 14:21:05 · answer #5 · answered by C C 3 · 0⤊ 0⤋
Hope this helps!
2016-06-30 01:50:41 · answer #6 · answered by ? 5 · 0⤊ 0⤋
The check will go to you and the loan company if they are a lien holder. Once they are paid off, you will get the difference.
2007-07-24 14:58:52 · answer #7 · answered by Anonymous · 0⤊ 1⤋
As an insurance agent, the check will be made to both of you. You will have to pay the lien on the vehicle and then the proceeds left are yours.
2007-07-24 15:10:37 · answer #8 · answered by paladin5150 1 · 0⤊ 1⤋
The check will be made payable to the loan company and you.
2007-07-24 14:15:15 · answer #9 · answered by Chef dad 3 · 1⤊ 1⤋
They'll give you the check, but it will be made payable to you AND the loan company, so you won't be able to cash it.
2007-07-24 16:10:13 · answer #10 · answered by Anonymous 7 · 0⤊ 1⤋