Car Totaled

Submitted by Anonymous (not verified) on Sun, 11/18/2007 - 06:35

My car was totaled with the other person at fault. The car has a lienholder and sure balance is more than car value. Question is will the check be made out to the owner or the lienholder. Claim was filed on the at fault persons insurance only. No claim filed on my insurance. I am waiting at this point for the offer.

Posted: 18 Nov 2007 10:29 Post Subject:

Good morning Eb and welcome to the community,

Well Eb, if your vehicle were not totaled you'd have run a good chance (as a claimant rather than the insured) of the repair draft being made out to you. But since your vehicle is totaled the lein holder will be involved. The only way that they MAY not is if you retain the salvage. But even as a claimant if the insurance company is doing their job they will need to (in most states) see the title which will of course show your lein. (or in some states the lein holder retains the title until the vehicle is paid off). So to answer, probably draft will be made to you and your lein holder, because the insurance company will need to get a GOT (gaurantee of title). Meaning the leinholder will release the title to the insurance carrier once they pay the ACV (actual cash value) of your vehicle. If you owe more than the vehicle is worth you will be responsible for that amount unless you have GAP insurance, (your lein holder will know if you do just ask them).

Please let us know if you have any other questions or if we can assistance you in any other way.

Posted: 19 Nov 2007 06:23 Post Subject:

Hi EB, I can't make it clearer than what Lori has said already.

Lien on the car often makes the claim settlement process bit tardy. You need to acknowledge this my friend that as long as you have the loan unpaid on the car, its title (officially) doesn't belong to you. Therefore, the claim check can be made to the lien holder alone or may have both you and the banker jointly named in it.

However, if you can retain the car, then may get the check drawn on your name. If you can keep your payments on the loan, regular, the bank will hardly care about anything else.

Rupert

Posted: 19 Nov 2007 06:45 Post Subject: The check may have your name in it

No claim filed on my insurance.



Well that's a good news. At least, your insurance rates won't get affected from this accident. It hurts, when your car gets totaled but you still have to pay-off the unpaid amount on the loan. Check it out with the lender; he might have taken out a ‘Gap insurance' on the vehicle. If that is in place, it will take care of the still-owed amount.

Regarding to your query….

Well, although I don't completely disagree with the other posters but you might get lucky with the check. Normally, in case of third party claims, the insurance company writes out the check on the claimant's name.

Thanks,
InsAmi

Posted: 19 Nov 2007 10:36 Post Subject:

Normally, in case of third party claims, the insurance company writes out the check on the claimant's name.


NOT if the vehicle is totaled InsAmi, how would they get the title?

Posted: 13 Dec 2007 06:19 Post Subject:

settlement letter for soft tissue damage

Posted: 29 Jun 2009 06:52 Post Subject:

Whatt about the made whole law? I was hit by a driver and my car is not worth much but we still owe almost 3000 on it. How can I get a new car and pay off the one we no longer have, thanks to a carless driver.

Posted: 29 Jun 2009 11:30 Post Subject:

753---I'm sorry but this is a funny statement you've made...

Whatt about the made whole law? I was hit by a driver and my car is not worth much but we still owe almost 3000 on it.


So to follow your logic, the insurance company should buy you a car that isn't worth much AND put you in debt 3k on it? :?

You're made 'whole' by being compensated for WHAT YOU HAD...not what you want, or wish you had...if you had a vehicle that (by your own admission) wasn't worth much....then that's what you are owed to be made whole...not how much debt you got into...The carrier owes you the ACV (actual cash value) of the vehicle that was damaged, in the condition it was in seconds before impact...Now if that was 100k, fine, if that was 500.00 fine as well..no more, no less..they owe you for what you had..THAT makes you whole.


How can I get a new car and pay off the one we no longer have, thanks to a carless driver.

Why would you think that you are 'due' a ''new'' car...????? You didn't have one prior to the accident right? And you were in debt 3k on it...why would you think that the careless driver owes you a new car, and erase your debt? Is that what you had prior to impact? Of course not...so why are you due that now? How does that make you whole? It doesn't..it would make you in a lot better shape than you were in prior to impact...The careless drivers liability coverage is meant to make you 'whole'...NOT better.

Hopefully you had GAP insurance on your vehicle. If so then the balance of your note will be paid. If the ACV of your vehicle is less than your debt, how is that the careless drivers fault?

Have you been made an offer of settlement for your total loss yet? Have you filed it with both your insurance company as well as the careless drivers company? If not it would be a good idea. Let them both figure the ACV and go with the higher of the two.

I sure don't mean to sound harsh, but I see this nearly every week...and I just don't understand what makes people think that just because they were in an accident they are due MORE than they had prior to that accident... :? Maybe you can enlighten me.
_________________

Posted: 30 Jun 2009 04:28 Post Subject:

Well Anonymous 753, if you still owe more than the car's worth, shall we believe that you had started upside down on the loan?

The 'made whole law' is to put you back more or less to the same condition prior to the accident and the insurance company owes only the actual cash value of the car and not more. The situation wouldn't have been different with your insurance company as well.

I too hope that you have gap insurance to take care of the outstanding loan, otherwise, bad luck. :(

~Jeremy

Posted: 30 Jun 2009 06:58 Post Subject:

I don't miss third parties that are upside down on their loan when the car is totaled. They call you every name in the book when you tell them let me know when you have the difference to pay of the loan so we can get that clear title. Don't miss that at all. :D

Posted: 30 Jun 2009 11:06 Post Subject:

Don't miss that at all

Das...same with first party..however, I must say with the existance of GAP policys I am seeing it to a lesser degree which thrills me to pieces! You still have people that think because they were inconvenienced by an accident they should walk away from the experience in better condition than they were prior....and that the ins. company due to their insured's negligence owe them more....I'll just never understand it...not as long as I live!

Posted: 01 Jul 2009 12:08 Post Subject:

At least with 1st party claims some carriers or at least some that I worked for would work with the insured to move the process along (customer service).

Posted: 01 Jul 2009 11:26 Post Subject:

At least with 1st party claims some carriers or at least some that I worked for would work with the insured to move the process along (customer service).

Ok, I get what you mean, now...didn't know where you were headed with the first party stuff.. :wink:

Posted: 10 May 2010 08:41 Post Subject: being made while

I had a 19 year old car covered with liability that was totaled by no fault of my own. I am not expecting much for my vehicle, but after trolling the used car lots, there ids no way I am going to be able to buy another car with that amount.
If I had to finance another vehicle and the higher insurance that comes with it, I am going to be put into a financial bind that was not even of my doing. I can understand if the accident was totally my fault, but why should I have to foot the added expense for something that is not?

Posted: 11 May 2010 11:02 Post Subject:

I understand your frustration, and have great empathy for your situation. But it comes down to it is what it is..they owe you the Actual Cash Value of your vehicle just prior to impact. Nothing more, nothing less. If you have to 'up grade' to a new car because of this loss, which of course costs more, that's not their obligation, nor do they owe for that. I truely very sorry

Posted: 11 May 2010 11:05 Post Subject:

I understand your frustration, and have great empathy for your situation. But it comes down to it is what it is..they owe you the Actual Cash Value of your vehicle just prior to impact. Nothing more, nothing less. If you have to 'up grade' to a new car because of this loss, which of course costs more, that's not their obligation, nor do they owe for that. I truely very sorry

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