I was in a bad car accident and my car is likely right on the border for being totaled. My problem is, it is a 5 year old car and I still owe $16,000 on it. If my insurance company is good to me, I should just barely be able to get that from them for totaling it. However, I will have no money for a new car, and my credit has taken a hit the last year so I wouldn't easily be able to get financing on something else.
My question is, if my insurance company totals my car and gives me a check, will the check actually be made out to ME, or will they automatically (or be forced) to give it to my auto loan lender to pay off the car? What I'd like to do is keep paying my loan I already have as if nothing changed, and take my totaled car check and go buy another car outright, but I don't know if that's possible or not. Can anyone help?
2007-08-02 10:05:26 · 10 answers · asked by bumblebee 1 in Cars & Transportation ➔ Insurance & Registration
Everyone who had a "smart" answer: please don't blame me or act like I'm trying to scam anyone. I would never commit insurance fraud or anything like that intentionally, that's why I was ASKING. I didn't know who it went to - I was just trying to figure out the best way for me to keep a vehicle. I'd never intentionally try and scam or defraud anyone.
2007-08-02 11:37:44 · update #1
Unfortunately, if the lender is listed as a lien holder on the policy the check will go them. If the car can still be driven and you don't mind driving a beat up car for awhile, you may be able to keep the car and receive less money. This way you can keep you payments going.
2007-08-02 10:20:18 · answer #1 · answered by Nate W 5 · 1⤊ 0⤋
2
2016-08-30 11:14:50 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The check goes to the lien holder in this case the bank or financial institution holding the loan. Hopefully you where wise enough to get GAP insurance to cover the difference of what you owe in comparison to what the car is worth, or you will end up being responsible to the bank or financial institution for the remainder due.
2007-08-02 10:14:10 · answer #3 · answered by Pengy 7 · 0⤊ 1⤋
If there is a loan on the car, the check will be made payable to both you AND the lending company. They won't give it to the lender - they'll mail it to you - but you won't be able to cash it.
Sorry.
Maybe you'll luck out, and the car won't be totalled. That way you'll only be out the deductible. In MOST states, you have to get pretty darned close to book value for the car to total out.
2007-08-02 14:35:29 · answer #4 · answered by Anonymous 7 · 1⤊ 0⤋
Lien holders will be payed what they are due first and the balance will go to you. Also if your car is not worth what you owe, the amount still goes to the lien holder then you still have to satisfy the balance to the lien holder. Sorry, that's what protects the lien holder from having a loan out with no collateral. These laws were made to protect folks from people like you.
2007-08-02 10:16:21 · answer #5 · answered by Buster 1 · 0⤊ 2⤋
The same thing happened to me last week. My brother was saying because my car is totally paid off, we kind of hit a loss. If we still had payments, the lender would get what we had owed them and we get the remaining. I hope this helps.
2007-08-02 10:10:04 · answer #6 · answered by Anonymous · 1⤊ 0⤋
whether you had saved paying money on your automobile, the finance agency for the automobile could nonetheless be getting the examine payable to them. they are legally the owner of the automobile till its thoroughly paid off. Thats once you get the pinkslip for the automobile from the finance agency, and you grow to be the criminal proprietor. on your case, when you consider which you havent been making any money in any respect, you will possibly desire to evaluate your self fortunate that they have got repossesed it yet. the sequence agency is going to come back to you and collect their money back.
2016-10-09 02:05:59 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You cannot do that. The check, if it comes to you, will be jointly payable to yourself and the insurance company. You sign it, they deposit it, and anything left after paying the loan out is refunded to you. You cannot take the money it isn't yours.
2007-08-02 10:09:56 · answer #8 · answered by Fred C 7 · 0⤊ 3⤋
What you are considering doing is called Insurance Fraud and it is a crime. That is why all insurance claims are paid to the claimant (you) and the lien holder (the bank).
2007-08-02 10:35:47 · answer #9 · answered by mccoyblues 7 · 0⤊ 3⤋
you wont get the money loan company
2007-08-02 10:22:08 · answer #10 · answered by joeal1234 2 · 0⤊ 0⤋