Bought a 1999 VW Jetta months ago, have a bank loan was in accident and it was totaled. Appraisal people came, decided to keep the car and just got check for $6000 bucks needs sign from me and bank. I'm still covered for insurance, if I go get it fixed, will I just pay the deductible or will it totally be out of pocket? They are also asking for the title, but I don't own the car so would the bank have it? I'm so confused!!
2007-09-27 13:24:12 · 0 answers · asked by jcscandy247 2 in Cars & Transportation ➔ Maintenance & Repairs
The check is $6,000 worth but I owe $7000 odd on the bank loan. They said I had two options, either sell them the car and it would be theirs and they'd sell it for parts or keep the car they'd give me money. So does this mean I'm screwed either way and I'd have to get a car reguardless?
2007-09-27 13:44:47 · update #1
The insurance company is asking for the title and the bank would have it since I have a loan on it. I'm just frustrated that it's a loss/loss situation..if I keep the car I have to pay for the damages out of my own money (right?)..and if I give it to them to take for salvage I'll have to start all over again.
2007-09-27 13:57:33 · update #2
Another thing it says on the note: In compliance with this statute, we have notified the RMV that you will retain posession and ownership of this total loss salvage motor vehicle.
2007-09-27 14:57:03 · update #3
If the insurance company "Totaled" the car it means they are purchasing your car for what they believe the value of the car is worth. That's the $6000 check they sent you. If you don't agree with that amount, you'll have to prove that it was worth more. Mind you, insurance is only obligated to pay what the car is worth, not what you owe on it. (There's something called gap insurance to cover the difference if you purchased that separately).
By paying you the $6000, the insurance company considers their responsibilities complete, and since they purchased the car from you, they want your title. The car now belongs to them. If you want to keep the car, you'll have to buy it back. Typically they'll sell the car to you for something like $1000.
Now what you owe the bank is and the loan is a different side. You must pay off your loan to the bank to get your title to give to the insurance company. If you owe $8000, the bank wants their $8000. Meaning you'll end up giving the $6000 from the insurance and need to come up with an additional $2000 to get the title from the bank.
If you owe $5000 on the car, it means that you'll get to keep $1000 of the insurance check and need to pay the bank the remaining $5000 to get the title to give to the insurance company.
2007-09-27 13:36:26 · answer #1 · answered by hsueh010 7 · 1⤊ 0⤋
When u have insurance, THEY come out to decide if your car is totaled, or if they want to fix it. If they total it, they cut u a check BUT u have to use that check to pay anything u owe on the car...thats why they put ur name & the banks name on it so u cant go & spend it without them knowing u have been compensated for your vehicle. The bank automatically takes what u owe from the check and if it is not enough (meaning u owe more than $6000), u will have to still pay the rest...how much ever u owe over that $6000. BUT if you owe only $4000, then they (bank) will take their $4000, and give u $2000. OR IF U SIGNED UP FOR "GAP" insurance when u purchased the car, it pays the full balance of your loan (no matter how much u owe:even if u are upside down) in the event of a total...so if u owed $3500 at the time of accident But your car was actually worth (blue bk value) $9500, they would cut u a check for $9500 and u pay the bank their $3500 and u keep $6000. Next time buy the Gap INSURANCE IF U DONT HAVE IT. Yes, the bank has the title. If you want 2 fix the car, u have to buy it back from ur ins. company and just have it fixed somewhere BUT u will have to pay for everything & it will be impossible to get insurance again bc it is a totaled car & when the new ins. com runs the VIN # it will show that the car had been previously totaled! When u take the check to the bank, they will either tell u that u still owe em some money & will set u up on a payment plan, OR they will give u some money back out of the $6000 check if the balance on your loan is less than 6000. email me if u have any more Questions...been here, done this sooooooooo many times.
2007-09-27 13:53:54 · answer #2 · answered by Capricorn 5 · 0⤊ 0⤋
WHO is asking for the title? If you decided to keep the car, the insurance won't need to title, they paid you what the car is worth, less your deductible, and less the salvage value. If you got any kind of a check from insurance, and owe money on the car, that money you collected goes to the bank, you don't keep it. And if it was totaled, we aren't discussing fixing it it is totaled, unless you decide that is what you want to do, and if so that is out of pocket.
How much to you owe on the car? If the $6000 doesn't cover the loan, you still owe the bank the balance.
Sounds like you need to talk to your insurance if you think they will both total, pay market value, AND fix your car for you. They won't.
2007-09-27 13:47:57 · answer #3 · answered by oklatom 7 · 0⤊ 0⤋
The check should have gone to bank, if you cash it you will have to pay bank back. I assume you owe money on it. The problem you may have is you likely owe more than 6k.Don't cash check or you accept settlement from insurance. If you owe more check with dealer you bought car at and see if you have bridge insurance,that means you bought additional insurance when you bought car to cover what your car insurance did not. A totaled car is just that and a pain to fix. In that they want the pink slip they think they are buying it from you for the 6 k
2007-09-27 13:34:16 · answer #4 · answered by the1autoguru 3 · 0⤊ 0⤋
First of all, the car is no longer yours. You may not get it fixed. The insurance company bought it from you for $6,000.
And yes, the bank has the title. You must go to the bank, pay off your loan, retreive the title and hand it over (with the car) to the insurance company. They'll usually come and tow it away for free.
If $6000 is not enough to pay off your loan, your insurance company screwed you. Welcome to life.
UPDATE: Since you haven't cashed the check yet, go to the insurance company and tell them you won't settle for $6,000. If you do settle, you'll have to give them the car AND you'll still owe the bank $1000 AND you'll have to buy a new car! Go to www.kbb.com to get the value of your Jetta, then tell the ins. company you want that much.
2007-09-27 13:33:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Your question is very confusing -- did YOU keep the car or did the insurance company tow it away? If the car was 'totaled' then you don't have the option of keeping all the settlement money and the car. Sounds like you need to pay off the loan and give the title to the insurance company. Your best bet would be to ask the adjuster ---
2007-09-27 13:28:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
When the insurance company totaled you car they gave you the total value of the car. Because they have paid for the car it now belongs to them, If you want to repair the car you are going to have to buy it back from the insurance company the full cost of repairs will fall on you. Also, you are going to have to pay the bank any money that is still owed on the car.
2007-09-27 13:30:53 · answer #7 · answered by milton b 7 · 0⤊ 0⤋
Ok, they paid you for what the 99 was worth...now seeing as you have a lien against the vehicle you do not get to keep the $6000 dollars...you will have to pay off the loan at the bank first and then if you aren't upside down in the car (owe more than its worth) you will get to keep the change and the car.....
2007-09-27 13:33:02 · answer #8 · answered by RiverRat 5 · 0⤊ 1⤋
The absolutely free reverse vin check sites generally provide fake information. To get real information, money will have to be paid. The free searches provide fake information so they can get your email address to send spam.
Stay away from shady reverse vin check sites, most likely you won't get any information after you make the payment. Not to mention you won't get a report and you won't get an answer if you try to call for a refund. Stick with a reputable reverse vin check site like http://www.reversevincheck.net that has been around since 1995.
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2014-09-03 06:02:32 · answer #10 · answered by Anonymous · 0⤊ 0⤋