i was rear ended...

by DESTINY2088 » Sat Jun 13, 2009 11:04 pm

i was rear ended and the insurance of company of the insured declared my car total loss who will the insurance company make the settlement out to?>

Total Comments: 6

Posted: Sat Jun 13, 2009 11:06 pm Post Subject:

The owner if their is no lien. If there is a lien, the insurance company will pay up to the value of the vehicle to the lien holder. Once the title is obtained, they will pay the owner any remaining amount.

Posted: Sun Jun 14, 2009 12:43 pm Post Subject:

Once the title is obtained, they will pay the owner any remaining amount.

"IF" there is any left over, if the value is less than the lein the owner, will be responsible for that balance, unless the have a GAP policy to cover this balance.

Posted: Sun Jun 14, 2009 05:21 pm Post Subject:

What happens if a person is upside down in their vehicle a large amount, say $5,000. If that customer is involved in an accident and their car is a total loss, then they obviously owe the $5,000 immediately. In this world of paycheck to paycheck living, what if the person can't come up with the $5,000?

Has anybody ever heard of the loan company allowing the owner of the vehicle to make payments on the balance? I know if they don't pay that it would basically be treated like a reposession and a judgment would eventually be filed on their credit for the difference. I can see where the loan company would not want to allow payments (they effectively have no collateral), but I can also see where many people would just refuse to pay!

Anybody ever experienced a situation like this? I have GAP coverage on all my vehicles simply to avoid the scenario...but I know it could cause some people great issue!

Posted: Mon Jun 15, 2009 06:44 am Post Subject:

Hi DESTINY2088,

i was rear ended and the insurance of company of the insured declared my car total loss who will the insurance company make the settlement out to?


So, you're the owner. But is there a lien holder to your car?

Steven

Posted: Mon Jun 15, 2009 07:10 am Post Subject:

Hello DESTINY2088, are you the title holder? Why are you worried that the claim check might not come to you?

Posted: Mon Jun 15, 2009 10:58 am Post Subject:

What happens if a person is upside down in their vehicle a large amount, say $5,000. If that customer is involved in an accident and their car is a total loss, then they obviously owe the $5,000 immediately. In this world of paycheck to paycheck living, what if the person can't come up with the $5,000?

Unfortunately this happens more than you'd wish it would. One of two things typcially happen...the lein holder will roll that note into the new car note...and still release the title, or if they won't. The carrier issues payment based on owner retaining salvage...

Has anybody ever heard of the loan company allowing the owner of the vehicle to make payments on the balance?

Absolutely, I see it happens ever day........most of the time the l/h works it out with the owner, to continue the payment, or (as I said) roll the new note on top of this one...

Another thread..showing the importance of GAP if you're upside down....and most folks are upside down at least the first few years, unless they put a lot down...

I'm seeing more and more vehicles with GAP, which thrills me to pieces..no adjuster likes telling someone..."I'm sorry, your car is worth 5k, I know you owe 10K, but honey, frankly they tore you're head plumb off when you bought this thing...and unfortunately I can't stop the bleeding..." Believe it or not...those claims 'stick' with you some times...and oh how I wish I could get my hands around the neck of the car sales man that did it.. :x

Once again...say it with me ''GAP"

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