my sis in law just had her car stolen last night and my mom in law is saying that she doesn't have to pay the car payment due next week. Is that correct info?
2007-11-06 12:41:59 · 13 answers · asked by amalaberry 1 in Cars & Transportation ➔ Insurance & Registration
Yes, if you have insurance. It is not required to make a car payment. That is what you pay insurance for.
The insurance will cover the payoff of the car and usually charge a deductible. In some cases where the actual cash value of the car is paid, the note can be paid off and you mom's investment in the car will yield her some cash back for her equity in the car.
If there is no insurance, than perhaps the lien holder will try to make her pay the notes. But it is all civil.
It's not like they can repossess it, she doesn't have it.
The account will be on her credit and eventually drop off.
2007-11-06 12:51:59 · answer #1 · answered by HA! HA! HA! 5 · 0⤊ 0⤋
If she has comprehensive insurance she just has to report it to her company and no payments will be due. The claims adjuster will wait for at least 30 days before settlement in case the car is recovered. If it is found tomorrow, stripped and burned, then the insurance company will pay the bank at once. If she doesn't have insurance then she will have to repay the entire loan. Even if she has insurance she may owe more than the car is worth -- then she will have to keep paying the bank until the balance is paid.
2007-11-06 14:45:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
What, the bill vanishes with the car? No, the finance company gave you the money, and you agreed to pay until it was paid off. There is nothing in there that allows you to stop paying if you give away, wreck, or lose the car through theft.
If you have coverage, eventually the insurance will decide it's really gone and give the finance company the market value of the vehicle at the time of loss, which may or may not pay off your balance. If it doesn't, you will have to make up the difference.
2007-11-06 13:10:37 · answer #3 · answered by oklatom 7 · 0⤊ 0⤋
Mom in law is dead wrong. Don't take legal advice from someone who's credentials are, they changed diapers.
She needs to keep paying on the car until the loan is paid off, or it will trash her credit. If she has insurance, she needs to file the claim. But LIKELY it will take weeks to get paid, and then it will go to the lender towards payoff on the car.
2007-11-06 13:43:41 · answer #4 · answered by Anonymous 7 · 0⤊ 0⤋
Unless you want to ruin your credit you sure have to make that payment. Your insurance will pay off (if you have full coverage) they will only give you book value for the car. You just might wind up owing more than the insurance pays off. Unless you have a pay off amount in your policy.
2007-11-06 12:47:13 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Yes, she has to pay it. She will have to pay it until she or the insurance company pays off the loan. Just because the car is stolen it doesn't release her from her loan comittment.
2007-11-06 17:15:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋
YES.... She has to make the payment... The finance company doesn't care if she has the car or not. They want their money.
What she needs to do is........ If the car was insured and theft is covered....... Make payments till she gets the insurance money and then pay the car off.
2007-11-06 12:51:19 · answer #7 · answered by ASDZA’NI 5 · 0⤊ 1⤋
Find out from the insurance company. When you make car payments, you must have full coverage, so her insurance should be paying for it.
Was it a Honda?
2007-11-06 12:45:33 · answer #8 · answered by mdcbert 6 · 2⤊ 0⤋
The bank doesn't care what happens to the car, they care about getting re-paid the money they loaned out (with all sorts of interest) So, yes she still needs to payoff the loan.
2007-11-06 13:43:07 · answer #9 · answered by saloon girl 4 · 0⤊ 0⤋
You owe the money to the Bank.
The insurance should cover the loan.
Anything left over is yours.
2007-11-06 15:41:46 · answer #10 · answered by Irv S 7 · 0⤊ 0⤋