by Guest » Tue Nov 13, 2007 09:59 pm
I was in an accident and my car was declared a total loss, I still have a lienholder listed on my policy and owe $$ . My question is what is going to happen now, Do I get to keep the car which is still drivable, its just the tailgate thats totaled Will the check that they write or will it go dirctly to the lien holder. If I keep the car what will I have to do to get the new title? please someone tell me what I can expect
Posted: Tue Nov 13, 2007 11:00 pm Post Subject:
You don't say if it is your company or an 'at fault' company that is totaling your vehicle. Either way a couple of things are the same. You can (generally) keep the vehicle they will pay you the ACV (actual cash value) minus the salvage bid or amount, most states will notify the DMV your vehicle then will have a salvage title.
If your ins. they will pay the lein holder direct, it will be more up to your lein holder than anyone if you can keep your vehicle, (they generally will allow this if your loan is in good standing and will not if it's not), the payment will be the ACV less your deductible (and salvage bid if you get to keep it)...You will be responsible for the balance of your loan either/any way this goes...
Do you have GAP insurance? Find out from your lein holder.
Posted: Wed Nov 14, 2007 07:56 am Post Subject:
goodmorning jeni4, you can retain the car if you think it is still drivable. But need to get the lien holder's consent over this. After all, they are the actual title holder of the car until the loan is paid-off.
Will the check that they write or will it go dirctly to the lien holder.
The insurer can issue the check on the lien holder's name or may have both you and the lien holder's named on it. Anyway, the reimbursed amount will go to the banker. And you need to keep on paying the remaining amount of the loan.
Posted: Wed Nov 14, 2007 08:25 am Post Subject:
Yeah! Having a lien on the car can, at-times, make things bit difficult. You always have to keep the banker update with the repair work done on the vehicle and even worse need to get it inspected by a bank official that the repair work was done properly. Upon satisfaction they will send you back the check to make required payments to the body shop.
‘Totaling' the car doesn't change the situation much.
Again, Lori is right. Try to find out whether you have a ‘gap insurance' on the car. Its quite a normal practice on the bankers part to take the gap insurance on the vehicles they financed. This they do to ensure their loan recovery.
Ruperts
Posted: Wed Nov 14, 2007 04:08 pm Post Subject:
You won't be able to keep the car if the value of the vehicle less the salvag value is less then you owe.
I'll explain... the car in it's current condition is worth something ("salvage value"). If you keep the vehicle, the insurance company should deduct the car's salvage value from their offer. You have a lien on the vehicle which really means the lien holder owns the vehicle and can settle the claim however they want. The insurance companies payment is going to go to the lien holder up to the pay off amount. So if you wanted to keep the vehicle, you lien holder is not going to agree with this if the salvage deduction will means their won't be enough money to pay off the loan.
If you wanted to make up any difference before before the claim was settled then this would work.
Of course, if after any salvage deduction, the amount paid to the lien holder will pay off the loan there should not be an issue with you retaining the vehicle. In that case, you insurance company would simply make a payment to your lien holder and your lien holder would send you the title.
BUT.... this gets a little tricky in some states as some states require the title to be changed to a salvage title when the insurance company considers it a "total loss". If that is the case... you don't want to keep the vehicl.
Posted: Sun May 11, 2008 11:12 am Post Subject:
nevada guy
Your question has been moved to http://www.ampminsure.org/misc/tenant-damages.html
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